Kreslik.com - traders community since 2006

If I told you that, based on some measurement, the distance between the extremes is likely to be 120 pips then you could assume that trading off of the high or low extreme of that time period is worth 120 pips.

As a rule of thumb, price will either move 66.6-83.3% or 1.166-1.333% the measurement from the high or low extreme (120 pips would be 1.000)

The measurement is as follows:

1. look at the last 3 weekly candles that closed

2. the measurement is the range that is neither the smallest nor the largest.

Here I plotted the targets for the white candle at the top and then all the black candles to the vertical line.

Ignore the numbers to the right of the vertical line as they just list the candles in order of largest to smallest:

Hey

I am just wondering where you got the 120 pips from. Looking at the above chart the distance between the high and low of the crash zones is more like around 300 pips.

adaseb wrote:Hey

I am just wondering where you got the 120 pips from. Looking at the above chart the distance between the high and low of the crash zones is more like around 300 pips.

120 pips is just an example of a measurement.

I teach by PM and Google Talk so I just copy and paste parts of the chat because I am too lazy to type.

It is a Saturday and it is raining so why not be an example whore?

so it is always based off the 3 prev. candles for the current candle's projected target?

es/pip wrote:so it is always based off the 3 prev. candles for the current candle's projected target?

1 of 3, it is not an average but the range between the smallest and largest range of the last 3 candles to close.