I have spent twenty-three years studying how time effects price. When one charts the price of a commodity it's price that seems to get all the attention. To understand market behavior a trader must understand the relationship that time has on price. Once a trader has identified the time cycle a market is in, they can determine what degree of angle the market trending up or down. Keeping track of these angles enables the trader to determine when they are violated and be alerted that a change in trend might be near. By plotting the time element along with price a trader should be able to determine the price range the market will likely trade within. This can be very helpful when a trader is looking to enter or exit a market.
The matrix is a combination of lines and angles that converge over prices and are a key to forecasting prices. In using this tool you need to use it for the right job. You can't use a hammer as a screwdriver. The same holds true for trading tools. You must know when your tools are working and when they are not. When prices are following a trend line you need to understand that when once that trend line is violated prices will invariably go to the next trend line before you will see support or resistance. These trend lines of support or resistance are closely linked prime numbers, which are generally 25%, 33%, 50%, 67%, 75%, 100% of a specified price range. Understanding the relation of price to time is critical.
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