TheStrategyLab.com Price Action Trading Support Forum

Hi Mark,

As usual I have a question

Ok this is what I understood.

* In the first chapter we learned that the "first" hidden gap after a key market event creates a S/R zone "IF" it involves in swing point or strong continuation price action. (I am also aware there are some FED exceptions). This is the needed CONFIRMATION for that first Hidden Gap to become an S/R zone.

* In the third chapter instead of key market events we use our own pattern signals to create S/R zones. But now instead of looking for "FIRST" hidden gap after the key market event, we are now looking for the RANGE of the pattern signal(or we have the option of using the hidden gap if we had a WRB-HG in the pattern).

* And for the RANGE of the pattern to be used as an S/R zone it should be VERIFIED also. How? Again by looking at the price action definitions which is given in chapter 2.

* This is where I am getting a little bit confused. For example for swing point definitions we have 2 versions. One is looking for a previous unfilled HG "PRIOR" to the key market event.And it also looks for the "FIRST" hidden gap after the key market evernt and 2 consecutive same color intervals to fill the area of the PRIOR hidden gap!.

* Ok. So how are we going to use these definitions for the chapter 3? Are we going to use pattern signal just like a key market event? If it is so I am getting a little bit more confused because in the case of key market events we are using the "FIRST" hidden gap area as S/R zone if it is confirmed by the price action. In the case of pattern signal we are using RANGE of the pattern as S/R zone if it is confirmed. But if I am not going to use the area of the "FIRST" hidden gap in chapter3, should I still look for it after the pattern signal. Should I also look for a PRIOR unfillled hidden gap before the pattern signal? What about if PRIOR hidden gap is inside the pattern range? Too many questions...

* Because of these too many questions, I believe the first version of the swing point definition is specific to key market events and it should not be used for the chapter 3.

Right? or am I a very bad student who understands nothing?

Thanks in advance

Akif,

Since you always request people to post their charts. here is a screenshot of a swing.
my question is sometimes it takes a lot intervals to validate a swing point. For example in this situation we validated the swing point
at the last interval of that upthrust. we had really nice up bars after the swing (we had immediate 3 consecutive white bars with higher closes but none of them were WRB, dont even think about hidden gap) So because in our defitions of the swing points we are looking for a first hidden gap after the pattern we waited until the top to validate the pattern.So this means we can not validate this swing upto that last interval. Am i right?

Akif,

Hi Mark,

Thanks for the explanation. Actually I posted this chart as an example for the chapter3. There is no key market events involved in that chart. What I was trying to show that, imagine in the gray circle my own engulfing pattern signal triggered [I know I am forcing a little bit here. But this is just for an example]. To be able to use the RANGE of this two interval pattern as a S/R area, first we need to make sure that this price action involves in a swing point or continuation. For the confirmation of the swing point I need to find out a FIRST hidden gap after the key market event OR pattern signal in this case. And that FIRST hidden gap after the pattern signal is at the top of this upmove. I hope I am not wrong at using pattern signal instead of key market events while confirming an S/R zone related with a pattern signal.

I will try to post a better annotated chart tonight.

Akif,