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the interpretation and application of price action concepts

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OPEN GAPS2


I always follow open gaps. They can act as magnets to attract price and as important support/resistance area. Gaps are measured from the close of a price bar.

click chart to enlarge

 
Technically this may not be a Head & Shoulders "by the book". It is how is see them. So far its working. Neckline broke and retested twice. I would prefer the left shoulder be a bit more symmetrical. Trigger was 867 target is 783. Perhaps we will retest the neckline again and move sideways for a while. Sideways action could create a bear flag or sideways channel, filled with price energy ready to explode for the next move. 

 

 

 

 

expect miracles, they are everywhere.............. God is good all the time

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