The price projection is made at the open of the first candle to open below the demand line. For visual reasons above the candle has closed also, but the price projection should be projected immediately following the open of the candle. Remember, we don’t need the candle to open and close below the demand line in order to make our price projection, only the open is needed. Above in the example, we have an open value of the first candle below the demand line at 1.9010. From this value we will subtract the 186 pip difference we got from step 2.
Open below demand line1.9010
Difference from Step #2 0.0186
1.8824 becomes our price projection to the downside from the open of 1.9010. This is a 186 pip potent
In the pictures Mouteki forex system in action.
Notice the price projection marked at the bottom of the page. The line was place 186 pips below the open of the first candle below the demand line. Let’s see the trade just one candle after entry.
Note the rapid decline in the value of the currency once it breaks the demand line. Let’s see if it reaches the full price projection.
Note the rapid decline in the value of the currency once it breaks the demand line. Let’s see if it reaches the full price
projection.Notice how price fulfilled the 186
pip price projection. What may seem at first to be a complicated task, once reviewed and practiced by traders becomes a very easy and profitable way to trade. Trend line projections give the
trader the best overall view of where the market will be going. In the
above examples we have discussed demand lines and the downside price projections once the demand line is broken. In the next section we will discuss supply lines and the upside projections that are created from supply line breaks. The same technique is used in both instances except you are using know a supply line instead of a demand line and you will be projecting a upside breakout instead of a downside breakout.
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