EDU-Series | BREAK LEVELS | XRP 4hr Procedural Analysis
enjoy this C0tt0nC4ndy TA thats digestible.
Technical Analysis is comprised of several parts; Procedural Analysis, Risk Analysis & Comparative Analysis.
Break Levels.
As price distributes printing two or more consecutive distribution candles, a distribution range is created on that timeframe.
Price must now accumulate and break over the level to break the distribution cycle from happening. If price is successful at gaining this distribution range's break level, then we no longer need the data it was representing, right?
Correct, the data being represented when price was below it was resistance, holding price down. Well now the data is expressing a different set of rules, support.
The First candle is a distribution range is now referred to as a Back-Side Hold level.
The Last candle in a distribution range is referred to as a Front-side Hold level.
Each BS & FS hold levels will have different expectations.
Back-Side Hold level (BS) expectation = Strong Reaction. The closer price comes back down to this level the weaker it gets. Expect a wick down that is fast, abrupt and "strong" bounce. If that doesn't happen, just watch it carefully and follow a time rule when its tested. A strong reaction is still possible.
Front-Side Hold level (FS) expectation = Weak bounce but strong as in, this level should hold price up until trend break. (if trend is close, this is true. If trend is kind of far, its less probable. look for a better hold level)
**PRO TIP ** The Hold Levels are Protecting the Accumulation Range's Break Level**
Thus, the same is true on the other side. The Accumulation Range's hold levels (inverted BS & inverted FS hold levels) are protecting the Distribution Range's Break Levels. ***mindblown***
Technical Analysis is comprised of several parts; Procedural Analysis, Risk Analysis & Comparative Analysis.
Break Levels.
As price distributes printing two or more consecutive distribution candles, a distribution range is created on that timeframe.
Price must now accumulate and break over the level to break the distribution cycle from happening. If price is successful at gaining this distribution range's break level, then we no longer need the data it was representing, right?
Correct, the data being represented when price was below it was resistance, holding price down. Well now the data is expressing a different set of rules, support.
The First candle is a distribution range is now referred to as a Back-Side Hold level.
The Last candle in a distribution range is referred to as a Front-side Hold level.
Each BS & FS hold levels will have different expectations.
Back-Side Hold level (BS) expectation = Strong Reaction. The closer price comes back down to this level the weaker it gets. Expect a wick down that is fast, abrupt and "strong" bounce. If that doesn't happen, just watch it carefully and follow a time rule when its tested. A strong reaction is still possible.
Front-Side Hold level (FS) expectation = Weak bounce but strong as in, this level should hold price up until trend break. (if trend is close, this is true. If trend is kind of far, its less probable. look for a better hold level)
**PRO TIP ** The Hold Levels are Protecting the Accumulation Range's Break Level**
Thus, the same is true on the other side. The Accumulation Range's hold levels (inverted BS & inverted FS hold levels) are protecting the Distribution Range's Break Levels. ***mindblown***