Points of Interest

You may hear us mention Points of interest or see a black drawn line on the chart.

What are we talking about?

A place on the chart in which price has acted in a particular way, or has previously acted in a way, that could be of importance when predicting the next move.

Displayed, usually, using 1 or 2 Black drawn lines. Points of interest will tend to represent: classical patterns, trend lines or important price points from the past.

When points of interest coincide with our cloud signals we often see the best results.

At point 1 – price falls below the cloud but not our point of interest: black line

At Point 2 –Price breaks below the cloud and our point of Interest: giving a higher probability of a successful sell signal

A new buy signal – above the cloud, coincides with the completion of a classical reverse head and shoulders pattern.

This increases the probability of a successful signal.

Our favourite pattern: a consolidation after an uptrend. Price moves beyond the consolidation and the cloud in the same candle and continues the upward momentum.

We may also indicate long term trend lines. Where price finds support along a diagonal. Adding to a position when price meets a trend line and moves beyond the cloud can be a good timing strategy if you wish to scale up.

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