That's OK, the way you drew it is still acceptable, and was the...

  1. 19,112 Posts.
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    That's OK, the way you drew it is still acceptable, and was the way I would have drawn it previously.

    I usually draw horizontal Support and Resistance much more than trend lines, as I find them much more reliable.
    However, when Wyckoff discusses the creek, and overhead resistance, he almost always describes it as a wiggly line that catches all the highs (sort of like that line on the zoomed out IMU chart), and never as a horizontal line.

    So using the downtrend line of the consolidation process as part of the overhead resistance line makes sense (to me anyway), instead of just the normal horizontal line.

    Anyway, now you know what I mean, and have seen how I drew it, you will see this more often now, and if you draw it like that (or even consider it), you might even start to trade it like that, where there is much more room to move.



    cheers
    Last edited by Jako8557: 18/11/17
 
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