Thursday 21 November 2013

Conflicting TLs, resorted to Highs and Lows

Day started with a series on HLs so was looking to get long. There were 2 UWTLs that could be drawn along this series of HLs. Price broke below one one these TLs but I still would have expected a test of the prior trend high , so still long. Price then failed to make a new high at the test of the prior extreme and created a M top and LH from which would have been an ideal short to catch the massive down move. Whether i would have got in on this I'm dubious of as those TLs would have been v confusing in real time ie which one was most important?  However the Highs and Lows seemed to light the path here.  Perhaps when there are conflicting TL's I should focus solely on the highs and lows. Price action is most important after all.


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