What is behind the popular phrase "follow the market"? Not so much - only two components...
1. Knowledge of movement direction of the trading tool.
2. The belief in absolute truth of your knowledge.
And if the second point deals with opening and holding of trading positions with a full range of mental and psychological factors, everything is clear with the first point (SRP).
Let's see an illustration of chart of EUR/USD currency pair, timeframe h4, taken from history. A window of trading tool is provided with a last version indicator AO_Zotik, on which only a line of resistance/support (С/П) is remained.
In the Trading System of Early Prediction the С/П line in a window of the indicator excludes need of drawing a fan of MF middle lines on the schedule, completely replacing it and carrying out all its functions.
In our case, the yellow rectangle designates area within which the С/П line is located in the field of negative values. It means that yellow color shows area of unambiguously bear trend of the h4 level wave.
Accepted this timeframe as the "older", we define the h1 time range as "working". The hourly chart shows the С/П line also gets in a negative zone of a window of the indicator, and the corresponding areas of a bear trend of the h1 level are highlighted with blue rectangles.
At the place where multi-colored areas are crossed, not simply pleasant color of one of shades of green is formed, but this color ike a traffic light reveals, in this particular case, the ability to place orders for sale.
In such simple and accessible for everybody way the synthesis of behaviour of just one line of one indicator at two consistently adjacent timeframes deals with a global subject of strategic work direction on the market.
