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example of a down move, measured by using this method
Here is an example of one recent move down, measured with this method.
I am attaching 4 pictures, I hope I am doing this right.
What I do is (simplified here to the nth degree):
Picture #1 I identify the two consecutive up or down peaks, and link them with a trendline.
Then I check to see if the trend line is broken once, and re-tested, without it being broken a second time.
Then I draw a rectangle that is equal to the size of the previous move encompassed by the peaks being link by the trendline I just drew.
Picture #2 For a down move, I move the rectangle so that the upper edge is lined up where the trend line was broken.
For a down move, the bottom of the rectangle is the targeted price of the move (measured move).
Pictures #3 and #4 Then I wait to see if the target is reached. In a down move the bottom of teh rectangle is the target.
I switch to candle charts (last picture) to check if price was reached
The pictures attached here exemplify a recent DOWN move.
Take a look.
EBTA FOLLOWER.
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