Equilibrium Part 2

Equilibrium Part 2Lesson 2 of 86 min read

The short walkthrough

A downtrend on gold from the first mark to the entry: the break down, the range drawn high to low, the rally into the expensive half, and where the trade begins.

This is the whole method run once, in the order you would run it on a live chart.

The break comes first

Nothing is measured until price has told you which way it is going.

On gold, a candle closes below the last swing low. That is the break of structure (BOS), the close that says the trend has turned down. Only now is there a direction to plan around.

Draw nothing until a break has given you a side.

Mark the two ends

The fall runs from a high at 2,440 down to a low at 2,396.

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