Trev,
The ½ day average is the most reliable intraday and overnight in the absence of significant gaps. When wider gaps do occur, the full day average becomes the most important after the open until the ½ day average holds again as S/R.
When the 10-hour average is broken, it is very often the confirmation that all programs have reversed course.
On the chart below, you can see that confirmation occurred around 1:45 PM on Tuesday after failing to do so at 11:00 AM.
You can also read the averages alignments like any other moving averages-based trend following system with the typical “bow-tie” pattern at inflection points. Just remember that gaps can distort the reading. In fact, Cumulative $TICK is behaving much like an EV chart that also omits gaps.
Billy
Attachment 9427
Originally Posted by Billy
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