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• Levels 8/8 and 0/8 (Final Resistance). These levels are the strongest and provide the strongest resistance and support.• Level 7/8 (Weak, place to stop and turn around). This level is weak. If the price went too far and too fast and if it stopped near this level, then it will turn around and there will be a sharp downward move. If the price does not stop near this level, it will continue to move up to 8/8.• Level 1/8 (Weak, place to stop and turn around). This level is weak. If the price went too far and too fast and if it stopped near this level, then it will turn around and there will be a sharp upward movement. If the price does not stop near this level, it will continue to move down to 0/8.• Levels 6/8 and 2/8 (Rotation, reversal). These two levels are second only to the 4/8 level in their ability to fully reverse the price movement.• Level 5/8 (Top of the trading range). Instruments of all markets spend 43.75% of the time moving between the 5/8 and 3/8 levels. If the price moves around the 5/8 level and stays around it for 10-12 days (bars), the market tells us to sell in this “premium zone”, which is what some traders do, but if the price continues to stay above 5 / 8, then it will remain above it. However, if the price falls below the 5/8 level, then it will most likely continue to fall to the next resistance level.• Level 3/8 (Bottom of the trading range). If the price is below this level and moves up, then it will be difficult for it to break through this level. If the price breaks up this level and stays above it for 10-12 days, then the price will stay above this level and spend 43.75% of the time moving between levels 3/8 and 5/8.• Level 4/8 (Main support/resistance level). This level provides the best support/resistance. It is the best for a new purchase or sale. If the price is above 4/8, then this is a strong support level. If the price is below 4/8, then this is an excellent resistance level.
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