Updated 28th Feb:
System z gave a sell signal one month ago at 20600 level. Which is followed by a drop to 19200. On fri closing, system z gave buy signal at 20600. Would this be a false signal or would we really see inverse h&s breakout with followthrough? Market tell we follow.
Using concept of price impulse, system signals often coincide with breakouts/breakdowns of major trendlines. Like h&s breakdown in jan, and inverse h&s now. The other concept used is it keep track of how much profit is on the table for bulls and bears.
This is important because what fundamentally drive prices is two events. Participants forced to cutloss and dump their positions. Participants afraid to miss the train and chase prices.
