Understanding the Price Dynamics and SwingArm 5/23/23

Hey everyone! I wanted to share a small update regarding the charts. From now on, I won’t be posting them regularly. Instead, I encourage you all to utilize the link to the live charts. It gives you the flexibility to toggle on/off the specific data you’re interested in, allowing you to conduct your analysis more independently.

Remember, it’s essential to take ownership of your actions and put in the effort to understand the information. If you have any questions, please feel free to post them in the channel, and we can arrange a Zoom session to discuss further. Let’s keep the positive energy flowing!

The duration of price action within the SwingArm zones directly correlates with the likelihood of a potential break. As the price remains within these zones for an extended period, the probability of a break increases. This concept aligns with the idea of the 1st hit, 2nd hit, 3rd hit, and the potential for a break on the 4th hit.

the price

The Timeframe

When utilizing the swingarm extremes as part of a trading strategy, the extreme zones consistently serve as entry or exit points. The timeframe of the swingarm determines the duration required for the trade to unfold successfully. By focusing on freshly created 15-minute setups within the US Session hours (preferably after 8:00 AM), the probability of achieving profitable outcomes is in your favor.

In the event that a setup fails for any reason, it is possible to manage the trade to break even (scratch). Ultimately, the key factor is maintaining clarity of mind and consistently executing trades day in and day out. Even if one possesses a deep understanding of the system and can identify setups repeatedly, failing to take the entries will render that knowledge ineffective. Therefore, the importance lies in combining a clear mindset with timely trade execution to maximize the potential of the swingarm pressure trading strategy.

The Price

The ES500 index has encountered resistance around the 4200 level for a sustained period of a few weeks. However, the price managed to reach a high of 4230 before undergoing a backtest. This backtest will determine whether the 4200 area will function as a support level or potentially lead to a downward movement. Taking a 2-day perspective, we observe that the regression channel line is also being tested as resistance, and currently, it is holding strong. This indicates that the price is facing resistance from both the 4230 level and the regression channel line, suggesting a potential barrier for further upward movement.

Over time, as days pass, pressure will gradually build up, potentially leading to a break of the current resistance levels. Patience is required to witness this development. It is important to continue monitoring these levels to assess whether the price will find support and continue its upward trajectory or if a downward trend may emerge. By closely observing these price levels and their reactions, traders can gain valuable insights into the market’s direction and make informed trading decisions.

RUT Up 1.23%

Going into 3 STD on the 1 HR. & 2 HR

P144 on the RUT 1HR

The duration of the price action within the swingarm zones directly correlates with the likelihood of a potential break. As the price remains within these zones for an extended period, the probability of a break increases. This concept aligns with the idea of the 1st hit, 2nd hit, 3rd hit, and the potential for a break on the 4th hit. Not take a look at the one-hour targeting two hours zone 4

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When price approaches a specific zone, the response of the market within that zone can provide valuable insights into the counter energy present. Specifically, observing the reaction of prices within the zone in a 1-hour timeframe can be quite informative. If the price encounters a zone and experiences a strong counter-reaction, such as a swift reversal or significant selling/buying pressure, it indicates a substantial counter-energy within that zone. This suggests that there may be a higher likelihood of price reversing or experiencing a significant pullback from that zone.

On the other hand, if the price approaches a zone and shows a limited counter reaction, such as mild consolidation or minor price fluctuations, it indicates relatively weaker counter energy within the zone. This suggests that the zone may have less resistance or support and that the price might have a higher probability of breaking through and continuing its movement. By closely observing and analyzing the price behavior within specific zones in a 1-hour timeframe, traders can gain insights into the strength or weakness of the counter energy in those zones. This information can help guide their trading decisions, such as determining entry or exit points, managing risk, or assessing potential reversals or breakouts.

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It is important to be aware that as long as the 1-minute swingarms remain bearish (28/6) and/or 28/9 are bearish, the support zones below cannot be considered confirmed. In such a scenario, there is a possibility that the price may continue to trend lower until new cycles begin to emerge. The bearishness of the 1-minute swingarms, specifically the 28/6 and 28/9 patterns, indicates ongoing downward pressure in the market. These patterns suggest a higher likelihood of further price decline and potential downward momentum.

Therefore, caution is advised when relying on support zones below the current price level. It may be prudent to wait for a shift in the swingarm patterns or the emergence of new bullish cycles before considering support zones as confirmed and potential areas for price reversal. By closely monitoring the bearish swingarm patterns and waiting for signs of changing market dynamics, traders can make more informed decisions and adjust their strategies accordingly to adapt to the prevailing market conditions.

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