samxtrader wrote: Tue Sep 27, 2022 7:08 pm We appreciate mr Xard has done a lot for us, few have fully understood the direction of the trend ,

The direction of the trend is shown by a second dot and a second dot is simply a higher low or a lower high. If the market is making lower highs and lower lows the trend is down, if it is making higher highs and higher lows the trend is up. So the reason we use second dots is so that you have a confirmed trend as the second dot is a lower high or a higher low, add a second confirmation using moving averages and you have a strong signal to buy or sell.

The movement of dots is very predictable, if the market is making new highs and you have a larger dot appear it will move higher if price moves higher. You need to keep in mind that under every large dot is all the dots of every size smaller than it, but you only see the smaller ones appear when the larger one moves. A dot will stop moving higher if a dot of the same size forms at the low of a retracement. So when you see a large dot at the high and the market retraces and a small dot appears at the low of the retracement what will happen when price moves higher than the previous high??? The large dot will move to the new high and a smaller dot will remain at that spot.

Another thing about dots is that size matters, each larger size is showing a high or low from a higher time frame. The bigger the dot the higher the time frame it is from and therefore the more significant is, each dot is showing levels of support and resistance. Also you not only have second dots of the small size, you also count larger dots as if the smaller ones are not there. Second dots from larger dots are a stronger indication than smaller dots.


When you look at a chart think about what will the dots do if price moves up and what will happen if price moves down. It is not hard to do if you follow what I have written above, soon it will become second nature and you will not need to think about it much.