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Hi chartist,
Yes, I agree with you, when you do identify an mdrp in short term
movements , by the time it has show itself with the 'hook' it most of the way down on it's move.However looking back over the recent dow index it has showed some great clues where it was going to move to with the price projection it indicates.
Often i can find price projections which hit it right on the nail.
I think like you it is probably more fruitful used on a longer time scale such as 60 mins for example. this can give some great targets but it is then down as always to your position
management. i.e. when the RSI goes above the pivot stop get out. The risk to rewards can be quite good which enables you to put a stop above the pivot point allowing a certain ammount of wiggle.
How have you found the effectiveness of the price projections ?
One addition to the useage of projections I've given a little thought to lately is to relate the swings with Fibonacci retracements. John Hayden shows this quite well in his book.
This has then pulled me down further into price patterns with harmonic relationships phew head spinninn now lol.
cheers
Triplepack
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