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TRADERVISION Technical Basics > Price Compression / Expansion and Price Patterns
Price tends to oscillate between periods of compression and expansion. The corrective flagging that occurs during periods of compression can be indicative of the direction of the eventual expansion away from the compression with Positive Price Patterns forming suggesting Breakouts and Negative Price Patterns forming suggesting Breakdowns. Note that compressions of price can often form with the filling and testing of significant gaps in price which will therefore mark the bottom / top of that swing move.
TRADERVISION Technical Basics> The Coil and The Break
The longer a relative compression of price continues the higher the chance of a break from that compression. In order for price to maintain an average amount of movement the longer price goes without significant movement the higher the chance it will make a relatively larger movement once the movement begins. Hence the bigger a compression is the higher the chance of a bigger break from that compression. Note that the large lateral compression that formed between 2016 - 2019 [ WHT LINES ] preceded a big breakout from 125 to 190. [ DSHD GRN ARW ] Breakouts of compressions are typically preceded by positive price action. Note that prior to the 2019 breakout that price formed a positive Cup and Handle price pattern, [ CRVD CYAN ] that the final retracement from resistance @ 125 was highly corrective forming a Descendant Flag [ YLW LINES ] , only retraced 50% [ GRAY FIB# ] and retained the Coil Centerline [ DOTD WHT ] and that the breakout of that retracement was a much stronger move to resistance than the previous test, [ GRN CRCL ] all of which suggested price strength that was confirmed by the eventual strong breakout of that 3 year consolidation.
TRADERVISION Trader Talk > Gaps as S/R, Full Moon Moves
Gaps as Support / Resistance
Price often makes relatively impulsive moves away from relatively significant Support / Resistance levels. These impulsive moves leave behind relatively thinly traded ranges referred to as %27Gaps%27. [ SHD LGHT BLU / PRPL ] Since these gaps occur at relatively significant S/R levels they demarcate these levels which can later be traded as Buy / Sell levels. [ GRN / RED ARWS ]
Full Moon Moves
Price can often make relatively significant moves [ DSHD WHT ARWS ] at or near a full moon phases. [ VRTL WHT DOTD ] Sometimes price will make a significant pivot at or near a full moon that will last 1 to 4 weeks. If price is relatively compressed prior to a full moon phase [ GRAY SQRS ] it will breakout / down from that compression at or near the full moon phase.
TRADERVISION Technical Basics > Price Gap Tops and Bottoms Mark Support / Resistance Levels
[ SHD LGHT BLU, PRPL / RED , GRN ARWS ]
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