Equilibrium

Question 1

What kind of confluence is equilibrium?

Answer 1

Equilibrium is a continuation confluence.

Question 2

What is equilibrium?

Answer 2

Equilibrium is the 50% mark from the previous low/high to the recent low/high.

Question 3

Explain equilibrium within an uptrend.

Answer 3

Measured from a low to a high, if the retrace down is below that 50% mark, price is seen to be heavily discounted and thus many people will enter longs as the possibility of making more profit is high, cheaper starting position for the long. Cheap buy orders filled.

Question 4

Explain equilibrium within a downtrend.

Answer 4

From recent high to low, if the retrace upwards is above the 50% mark, price is seen as discounted. More expensive sell orders get filled as this presents an easy move to the downside.

Question 5

How is equilibrium measured in an uptrend?

Answer 5

In an uptrend, equilibrium is measured from the recent low to the recent high, zero being at the low, and 1 being at the high with equilibrium being between them.

Question 6

How is equilibrium measured in downtrend?

Answer 6

When in downtrend, equilibrium is measured from the recent high to the low, 0 at the high, 1 at the low with equilibrium between them.