maperdel » Sat Aug 06, 2016 9:11 am wrote:Hey guys, I want to ask a question regarding level count:
When price forms and a-b-c pattern,do you count the "c" part as level 1??
Two recent images as an example:
This is a damn fine question. One that I have often wondered about myself.
I'm still unclear about this and take these comments with a grain of salt (especially considering the results I've had over the past fortnight) but this is what I see:
USDJPY: C has not moved beyond the level 3 'range' nor has it closed lower than the day opened
EURUSD(1st one): I would probably call this a level as it has had 1-2 days of downward price which has clearly broken the level 3 formation
EURUSD(2nd one): this one I'm not too sure on. I'm inclined to say you've marked it up correctly. There was a sizable break but then price pulled back, formed an M then moved lower again. I'm still trying to understand level resets but I think this is what has happened here, a reset. So your '2' should also be a '1', that is, there are two level '1'.
Cheers,
BobbyT
