Do You Recycle Your Old Lines or Throw Them Away? (Part 2)
09/19/2008 12:00 am EST
Look what I would have missed if I had simply taken out the eraser and removed the violated blue up-sloping median line set! Even though the red down-sloping median line set was showing me the probable path of price, the blue median line set still had a vital role to play. What had been significant support became significant resistance!
If you had "recycled" the "broken" blue up-sloping lower median line parallel and paid attention as price approached it from below, you would have known exactly where price was going to run out of upside directional energy.
Don't be too eager to discard lines that have worked and worked for you in the past. They just may have a play or two left in them if you keep them on your charts and keep an open mind.
By Timothy Morge