Today in our level 2 class we took a look at $DUK (Duke Energy Corporation). We examined the supply/demand and trend lines on our level 1 classroom session so all the ground work was already completed. Today’s class was focused on looking for the trends, consolidation, ranging, key zones and magic zones.
During our discussion I went into more detail talking about sequences and knowing just how important they are to determine what timeframe we should be focusing our attention on.
I used the example of what we were looking at on this chart. We have a situation where price looks to be turning over for an eventual drop. The weekly chart looks ready to break a trend line but how do we know if these things will happen. How do we increase the odds of knowing these things will play out.
One of the amazing ways we use the concepts and principles taught here at the school is to see signs of a weak structure and knowing what these will likely lead into. For instance, on the weekly chart we had a poor looking trend that was being formed and this led us to know that the trend was not reliable and that price cold decline without any issue. We talked about the lack of price close past a certain point, we talked about the formation of the trend line and how it was not high quality and we talked about the lack of momentum we’d like to see in order to be able to rely on any new demand being formed, to hold in the future.
We pinpointed the spot on the weekly chart where we knew for a fact that price was likely going to drop further. We also discussed the spots on the charts where conventional traders would be looking to enter into a long position. What we found is that retail are very often getting in at the worst spot, well after signs were given to avoid these mistakes. The things is if one doesn’t know what to look for then they will fall into these traps.
We covered so much in this session and we hope you have a watch once it’s been edited and made available in the library. Keep an eye out for it!
In the meantime, we have so much gone on here at the school. We still have our Black Friday Sale going on as we’ve extended it for our followers. Take advantage before the time is up at the end of the year.
So, what are you doing still reading this? Go there now and sign up!
Kevin Araujo
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