I was thinking about all the different topics that I have covered above, and thought I could make up a few charts to test the knowledge of the readers of this thread a bit. I think it is important to actually identify certain price action on the chart, and draw some lines yourself. So I made up two charts with a question or two attached to them. I suggest you take a copy of the chart and paste it into Microsoft Paint, or similar software, and draw lines or arrows and comments on it. And when finished save it and then upload it back onto this thread, and preferably hide the chart behind a 'spoiler' if possible so as not to change the opinions of other members. I encourage anyone playing this game to go back and re-read the topic concerned above, as a brief refresher, before answering the questions. Finally, I won't be trying to trick you at all, so don't 'over think' the exercise (at least to begin with). If this is considered successful, I will do it the next few weeks or so.
enjoy...
So the first question should be fairly easy and is to find the "Spring" on the chart.
And as an optional secondary question, where would you place a line to illustrate where price would breakout (there is no actual wrong or right answer here, it may be either a trend line or a horizontal line. I have a preference for how I do it, and will show that in my answer or answers. Also add any brief comments that may help to explain what you are seeing and why.
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The next question is a bit more difficult (or technical) so go back and read the little piece I wrote on it.
Find and mark the period of Potentially Bullish Absorption.
And secondly mark the most important lines on the chart (not every little line, so don't get too carried away, just the most obvious and important lines), so as to make the price action come to life, and make a few brief comments if possible, to explain what you see.
