thursday thinking, page-42

Here is an example of what happens when the support doesn't get broken on the 4th attempt - SPX 10 minute from just now.

The support is from this morning before the US close (1st oval). Support was tested three times during the day and bounced each time (next 3 ovals). On the fourth test it bounced again (first green arrow). So I said to myself, "Something else must be going on here. Let's see what happens on the next attempt in case I've overcounted, but get ready to do the bolt". Fifth test (second arrow) gave a small false break. When the support was recovered I covered my short as false break's are often followed by fast moves (which in this case would be up). The next false break was larger and was followed by the fast move up.