T4J, 4592 was the WS2 for last week. As it turned out, the Ws2 did contain the drive south today, as it was not even hit. Now, this week is past. We look forward to a new week Next week's WS1 is 4571.
If the correction continues higher, then the WS1 has to contain, because the WS2 at 4519 is lower than the dip.
Cycles from one period to the next are going to be similar. Even though this week is now in the rearview mirror, there will be price action next week that will possess many of the same properties of last week's levels. Regardless, once that period (This case, the week.) has concluded, the new S&R's in that TF for the next period kick in.
Keep in mind my S&R's even though they may appear, because of their accuracy, to be chart S&R's, they are not. They are purely mathematical. When I word the S&R's, my charts are necessary because I like to have a precise view of the cycles and how price has interacted in previous periods. It's kind of like taking a picture of price action in my own mind, so that photograph of price action is set. Because I know my formula like you know the back of your hand, viewing the recent price action gives me at the very least, a conceptual idea of where the following period's S&R's will be.
How can we be sure it will contain? Tucker said so. LOL.
Okay, seriously. There are no guarantees. Regardless how good the forecaster might be, there are no iron clad guarantees. This is why I have alluded many times to the trades I take have a HCR (High Confidence Ratio). Earlier this week I had a breakeven trade on the AUD/CHF. That was what I felt to be a very high confidence trade. As it turned out, I made no money on the trade.
Having said all that, when the forecasts are accurate to a high degree most of the time, then there is no doubt money, and lots of it, is made in this industry.
At this point, I am really hoping for the WS1 to contain. The recent leg of the correction still appears it was not deep enough, and I do not want to spend time evaluating where the next probable dip is. That is the ulterior motive. In essence, the correction is still on until next week's WS1 is taken out.
That 5173 was the daily kijun if I remember right. Also, if I remember right, we had a sharp move south after it was touched.
There are times when you can accurately say, "If this happens, then that will happen." Other times, it is not quite as sure, and so terms like "Decision point" come to play. Many times, though, decision points will yield a low risk trading opportunity. I took a short on the EUR/AUD today at a decision point. It has no pullback and a quick profit. OTOH, it was still just as likely it would have lost. That type of risk was worth it, because the decision point said the short could be entered with a 20-pip SL, and the TP was 73 pips.
LOL, I've also taken many trades in the neighborhood of a 50-pip SL and a 20-pip TP. I don't want anyone getting ideas I pay attention to RR ratios.
This is just a query, don't get in other way.
Today you said 4592 could still contain but now in your weekly S&R, i don't see it anywhere?
Any reason?
Can you explain it through chart, it will be very helpful?
How we can be very sure on whether it will contains or not?
Like you did last time @ 4777 & i remember about 5173 where you were saying just look what will happen when it will touch this price
This week we have 3S i.e. 4571.69 4519.38 4432.54