*click on chart for full resolution*
Above we see a lot of lines drawn on a chart...
These lines are just guesses of certain price levels where demand will over power supply or vice versa...
These Lines in the Sand were drawn using 3CC (3 Custom Candle) turn around points near or at extreme levels...
But what about the extremes themselves...?
*click on chart for full resolution*
Here we see the effect of plotting lines on extremes...
Extreme's are great because often price will cross a extreme LiS but will not close beyond it... If this happens then we can almost say that price has been supported or resisted...
Also if price doesn't breach an extreme we could also say that because it isn't making a lower low or higher high that it will continue to move in the trend direction...
These methods are largely due to the work and guidance from a trader by the name of MightyOne who can be found at www.kreslik.com as well www.insanityindustries.net
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