RCKT RCKT Try to get out of the wedge
IF it finds strength and volumes TP 28, otherwise it continues the descent
RCKT trade ideas
The Wash and Rinse To See True Support/ResistanceTrue support and resistance is found in the meat of the move, not at the extreme highs and lows. To find it, Simply draw a zone or box and look for the place that price touches the most, and then pay attention to what happens afterward.
In this lesson, I set up a trade plan and show how a Wash and Rinse structure at the pivot of a swing uses the most touches to find true support in a market. I then show how to identify it.
The Wash and Rinse has a process that we can follow in real-time.
1. Multi-Pivot Line (MPL)
2. Zoom through the MPL
3. Come back and retest the MPL
4. Zoom back through the MPL the other way
What happens in this process, is that buyers are holding some level. Price then busts that level triggering stops and at the same time encouraging shorts to enter. Then price rips back up essentially cleaning the book of orders and showing where the true support is (at least for the time being).
Once you can recognize this structure, you can begin making your own observations and use these levels to read a market or begin to build a setup around it. The most important part is to learn to design a plan with objective rules around what you observe.
Shane
Possible Bear flagConsidering the prevailing channel, a possible short rally is imminent, which will be followed by an additional decline in price. Scalpers can enter three cents above today high for few days of rally and exit at any sign of a pullback.
A short would be appropriate at the top of the bear flag for one more leg down.
