pleasantly caught was high.
Finally we have the classic case of f.) where the reversal
sweeps "don't hold hands" and price rallies rapidly and decisively. Accordingly the max bear point level f.) serves to halt a subsequent strong downthrust.
The hourly Spot Stg chart (figure 2) shows four reversal
Levels that have one property in common, namely they each represent the period of maximum bullishness [b.) and c.)] and bearishness [a.) and d.)] of their structures. (Note the period of maximum bullishness/bearishness should always be looked for in any reversal or consolidation structure.) Whilst in the great majority of cases it is constituted by an isolated high or a two period reversal of the type discussed (high and low of the first period depending on direction of reversal), this is not always the
case. Sometimes this point can be "cunninglv" hidden amongst the oscillating price action (eg. "c" in the Stg Hourly chart) yet it will still represent a key level if the area containing it is re-challenged.
How long do these horizontal support/resistance levels
maintain their influence?
When price action reaches key levels it is more common to find price stalling than rushing straight through like a runaway train. This stall mav precipitate a reversal or a consolidation. where the market gathers itself for a decisive push through the price obstacle(s) that has temporarily balked it. When price breaches support/resistance it weakens it, even if by the close we
have returned back through the level.
To precipitate - ускорять
to hold one's
hand — воздерживаться от действий, занимать выжидательную позицию
to stall — задерживать
failure — точка неудачи
correlation — оказаться в соотношении