Friday, June 03, 2011

Rapid price movement

Pure air prints a series of wide range bars as price thrusts from one stable level to another. Rapid price movement tends to repeat every time you enter the trading limits. Potential prize spikes sharply through these unique zones. But watch out. Upheavals tend to be sharp and vertical as well. Tight stops are advised.

Cycles of model recognize that important features can not be horizontal. What the eye resolves as uptrend or downtrend contains multiple impulses shooting in many directions. The most common of these is the Parallel Price Channel. Use these extremes price to enter contrary positions with stop loss just the other side of the parallel trendlines.

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