1 Attachment(s) Notice that the Black arrows, the formula does work. The wicks are opposite and the short one is hitting on the line. So you keep out of this short. And incidentally, common sense plays a big part so in the event that you have none.

Jim

Quote Originally Posted by ;
The formula I use is what I call extended (Compounding Long Wicking). Applying this formula in any way traces of support and resistance will give you an 80 percent or better success rate of this bounce. Below is a good example of what we are searching for.

Chart #1 we are wating mode and also we see the price coming an already defined UTL, (See White Arrow ). We wait to get a touch.

Chart #2 shows a touch and we need to apply the Simple formula to see if we have a good chance of a bounce long. The wick of the candle touching the line has to be longer than the previous...
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