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The perfect S90/Crossover is found on a
Fibonacci level when the horizontal line that is drawn from the
original support or resistance of the founding trading range
actually cuts precisely through a gap in the market. I am
referring to the combination of a gap, Fib level, and an
S90/Crossover.
This chapter provides 15 charts that illustrate these gaps; the
captions on the figures explain the gaps, to help you understand
the potential target values.
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GAPS
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Because the normal rule or thought about
gaps is that they must be filled, the odds of filling the
gap become extremely good, and you can see how many other
types of confirmations will signal the return of the market
to fill the gap. When an occurrence like this happens, you
will observe that a perfectly precise S90/Crossover strike
is often followed by an immediate reversal.
more
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HOLES IN THE MARKET
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Patterns that appear on charts often have
great significance; one of these patterns in particular is
what I refer to as holes in the market. Another variable to
consider regarding S90/Crossovers is what I call a first
strike, are found on 30-minute time compressions. Larger
time compressions have more value and strength when the
S90/Crossover is combined with a gap. A weekly chart, shows
a gap that was filled in association with an S90/Crossover.
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