The 45 Time/Price levels (displayed as zones using the Auto Momentum Tape Reader tool), provide consistent price position feedback to the trader. Specifically . . . continuance vs bracketing versus break-out potential/time. The picture above is painted quite clearly as price applies into 1st: key Fib fence (vector) crossover potential, 5:18 forward, and 2nd: key trough resistance break-out potential, from fence crossing forward. This 2nd point is crucial to tape reading. The reason this potential resistance break will be key to break-out is because this price level was previously broken above. The green zone that is running parallel and below the current red zone tells you that earlier in the day, buying occurred at this price level . . . enough buying that a break-out above the red resistance level occurred, which consequently turned into this running support level . . . the green zone. This green zone then represents the last reversal support zone and is going to keep running until a new reversal support zone occurs . . . a new green. So as price applies into this red reversal potential the trader knows that this is a level where the market had support previously, and if a resistance break occurs here, a new support zone green will be generated, confirming that market support still exists at this price level, ie the perfect proof-point level. When/if this occurs, the 3rd marker (green lines) will drop to mark this significant event as a 270* support zone, and it will remain support until it is not. This pic should be studied thoroughly as it reveals the exact mechanism that successful tape reading is all about, ie natural law support/resistance levels broken become resistance/support levels of the future. Tracking those levels and trading accordingly, with stops as shown, places your trade entry on the correct side of market momentum.
Dox Box . . .
The imperative read for understanding is found at the 'Law of Vibration' site . . . Topics: ' Directional Bias', 'Time/Price 45', and 'Fractals' . . . Read . . . Understand . . . and find Success.
