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EXPLANATION OF LEVELS AND HOW THEY MAY BE INTERPRETED
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Although all levels must be considered
for targets and reversals, there are certain levels that
have more importance than others. For example, in Table 4.1,
the levels illustrate the number of S90/Crossovers that
occurred during just one New York open. Notice that one
level is duplicated on the different time compressions. The
level 1.2809, is common from the five-minute time
compression through the four-hour time compression, but it
is not recognized on the daily or weekly chart.
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AS-90 CROSSOVERS WITHIN A RANGE
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Educational Note: A gap present on an S90/Crossover increases
the odds of success
as a profit target and also as a new reversal entry.
S90/Crossovers that occur in
conjunction with a larger compression trend will also indicate a
strong level for reversals
or targets—provided additional confirmations exist to justify
the entry. Also, when
one level, is found on numerous time
compressions, this strengthens
its value within a trading range for a future reversal entry or
a profit target if trading
toward the duplicated level. It may often become a former
historical S90/Crossover level where the level has been revived
and duplicated. more
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S90/CROSSOVER LEVELS ARE NOT THE SAME AS A PIVOT POIN
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Although the S90/Crossover levels appear
to be similar to traditional pivot points, they are not.
Pivot points are generally known as levels of possible
reversal entry points as well as profit targets. Although
pivot points are awesome at times, the problem I have
observed is that they are published on the Internet and may
give clearing firms and banks the opportunity to herd
traders into a position of taking massive stops from smaller
traders. This may be considered swimming with the sharks, so
to speak. more
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LEGAL AND ILLEGAL S90/CROSSOVERS
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A legal crossover (LC) is a visual
confirmation that you must observe to determine if a future
profit strike or entry will be valid. These LCs occur every
day in different currency combinations, and you should mark
those LCs that can be trusted on charts immediately for
future reference. Legal crossovers can be trusted in the
market, and illegal crossovers cannot be trusted. Often,
illegal crossovers are interpreted by many traders who use
traditional signals such as pivots as an entry, frequently
causing losses. more
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