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RE: Check out D-Tube and lets mark up some charts
tl;dr base is at 750 u bought the broken and returned base, and sold on another bounce which went to the same level and retested it
in position trading only first bounce is guaranteed
if u are daytrading use 5min or 15min candles and draw bases off there if you wish to use the method
Thanks nbiroz, so your saying Luc's method is really only valid on the most recent base in regards to a safe bet...when using previous bases and the retesting of those bases there is less predictability of the chart direction...correct?
the theory tells yo to care only about 1 or 2 last bases(unbroken i assume) in 2 months zoom out, and to trade panic sells. But it is your choice to trade any crack or drop you see sufficient. I am not sure how you would go about calculating your probababilities.
smaller bases are useful for daytrading where u can zoom in on 2 weeks or less chart and use 5 or 15 min candles for buying dips below these bases.
position trading relies on buying below major breaks and waiting for first bounce that almost retouches the previous base/level.