Tuesday, March 17, 2009

The Dynamic Lines of Resistance

Definition

Dynamic resistance or dynamic resistance of the line are a combination of the percentage recovery and the trend lines that change along with the trend.

Description

Dynamic lines developed Edson Gudom are kind of the idea of dividing the trend in the third. The main difference between the percentage of recovery is that the dynamic line measure the degree of lifting and lowering or «rate», which is developing trend.
With an upward trend through time are as follows:

• A vertical line from the base to the highest peak (depicted in blue);
• The vertical line is divided into thirds;
• A dynamic line (shown in red) from the beginning of the trend through the points in 1 / 3 and 2 / 3;
• The upper line is often referred to as the line in 2 / 3 speed, and the bottom line as 1 / 3 of the dynamic line.

A vertical line from the peak to the base of the trend and is divided into thirds, to be followed by appropriate dynamic lines.

As the trend develops, and form new peaks (or troughs in the case of the downward trend), vertical lines are repeated, and added new dynamic line.

The same market a few weeks later,

Dynamic lines, unlike the trend lines are often carried out through the zone of price activity. Alarm sales: if the rising trend in the price crosses the upper dynamic line, it usually falls to the bottom line dynamic. Also, pay attention to how previous support has been a drag.

Alerts

Ascending trend: While the rising trend correction usually stop on top of a dynamic line. However, if the price crosses the upper line of dynamic, it is often a good sign to turn the trend and can be used as a signal of sale.
Top-down trend: During the downward trend, the intersection of the bottom line of dynamic signals of a possible rally in the top line and the upper line is broken, it usually indicates a continuation of bottom-up rally.



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