The Brains Trust - 2024, page-1463

GOLD Quick update on that hourly chart I posted & the potential IHnS..
Broke through that neckline at 5pm yesterday AEST.
Then to my delight an almost perfect backtest of that neckline at 7pm & again at 9pm. Textbook stuff & a $30 rise up to U.S. opening where it pulled back somewhat (markets apparently waiting for Friday US employment numbers including NFP)

FWIW I have long pondered the much vaunted BACKTEST & I have concluded;
1 Using the price move through an IHnS like this gold example. The bulls have won and got price through the resistance line/ neck line. Triggers some buying from bear stop losses.

2. Bears have a final fling at forcing price down BUT the bulls show they are in control when price hits the line they are watching and BUY .... triggers more stops as bears capitulate and reason why price often ZOOMS away from neck lines.

CONCLUSION; when support resistance lines (including neck lines of HnS) are broken & the back tested I treat it as confirmation that SM/algos are WATCHING and trading the lines I have drawn. Always encouraging for a chart squiggler.