Here we see another nice example about Action/Reaction.
What you see is a Fork with 4 Warning-Lines.
- watch how price acted at the U-MLH, at the CL and how the rules you learned so far are applicable. Study it deeply to get out of your time you spend on this Blog!
- price hit it's head first, bounce a little, then traded through it and did a test above it.
- price traded through it and hit the line multiple times. Nice indication that this WL acts as support.
- price just stopped at the WL, then traded through it and never came back (...this is the momentum created from the bunching at WL2
- price stopped dead at the WL and for now it looks like a reversal. But be careful, this is a weekly chart and the week is not over yet...additionally we are in a fast moving (slight exponential) uptrend!
Comment your observations below the chart please, thank you.
btw: isn't it beautiful to work with such a clean chart? No Indicators, no Oscillators, nothing that disturbs your mind and your thinking §8-)