Here is a common mistake that rookies make.
This is the daily gold chart, but it applies to all markets and all time frames.
A Rookie’s Mistake
Here is the mistake.
A Hawkeye Pivot is formed at the yellow arrow. Most rookie traders will draw a line off the high (the blue line).
You need to draw a line off the low of the bar as well (the yellow line). If it was just off the high of the bar then it was only touched twice.
BUT off the low it was hit eight times. So now you understand that this is a major resistance area.
BY DOING THIS YOU HAVE INCREASED HOW YOU PERCEIVE THIS AREA BY A FACTOR OF FOUR.
We demonstrate this and many other methods in our live demonstration room held every Wednesday, and this is open to everyone. Click this link for more information or to join us in class.
[The magenta and yellow arrows are for illustration only and do not form part of the software]