Billy,
Okay, you've got me with the use of this word! It's been bothering me all day! I "googled" it and what I found was:
homonymous:
1.having the same name as another
2.of or pertaining to a homonym
Would you please interpret for me so that I might better understand what you meant.
Thanks,
John
Billy,
I should say that you had me fooled, that is, in terms of English not being your native tongue! The funny part is that I'm almost beginning to understand you in terms of pivot language. However, I must confess that I don't understand the logic of why certain algorithms are preprogrammed for certain levels which is why I really need your class whenever you begin that.
John
Billy; what do you mean by porosity?
Thanks in advance.
Best regards,
Robert
Robert,
We use the word "porosity" to express the property of any potential support or resistance to be penetrated and surpassed by a certain percentage before being declared broken. We will then talk of "failed" resistance or support area.
In multi-pivot trading, it is important to measure porosity allowances. It is obviously a function of volatility, but as a rule of thumb, the penetration of any longer timeframe support or resistance may extent up to the closest daily level.
Let's look at yesterday's IWM action as a good example.
The 10:00-10:30 AM attempt to break above QPP(81.80) and daily R1(81.81) never reached daily R2 (82.24) which was the porosity allowance threshold as next daily level.
The 10:35 AM fall below the lower porosity allowance level of daily pivot (81.52) and WS1 (81.52 too) proved that QPP and daily R1 were successfull resistances. But WS1 (81.52) was now tested as potential longer term support with a rather large allowance to the nearest daily level of daily S1 (81.09) which was hit around noon. The retest of the confluence of daily pivot and WS1 was again a failure because price was pushed back below daily S1 heading into the close. That is why I mentioned in my intraday update that it was important that IWM closed above daily pivot (and WS1) to avoid a bearish bias for the next day.
You can see by my reply that it is all rather simple in practice but very hard to present in a structured tutorial. Market makers learn this through practice and never receive other tutorials than their own experience.
Billy