An Experiment

[ezrydn]

I've been testing a theory this last week that seems to be showing some success. I'd appreciate it if you'd give it a try and report your conclusions.

We all know that an order line can play the part of resistance when price comes in contact with it, bouncing off repeatedly. First off, think about candles a bit differently. I considered two types of candles; a supported candle and a free candle. The difference is a supported candle may be through half it's time and a free candle is independent and has not touched the order line. It's the free candle that will experience the most bounce.

Now, turn to the supported candle. It probably has wicks of some length. Open your order around mid-candle, so your order line dissects the candle that's supported, or established.

What I've noticed, and want to see if it's the same at your end, is that price has an easier, less time-consuming time passing through the order line. It experiences less or no bounce time.

Try it out and post your results.

 

[Easy Trader]

Could you post a picture of a chart pointing it out? If your finding that price is respecting your order line, chances are that you may be picking spots that are heavily littered with orders of the opposite nature as yours. I may be wrong though?

 

[ezrydn]

No. No chart. The description is good enough. Just imagine a half filled candle. Place your order "within" the candle, not before it. Simple enough?

If there's a lot of orders there, then they're all going in the wrong direction. You get no bounce off your order line? Just a straight slip thru?