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Or are you saying it requires 3 days of lookback and uses each day? Like I take the balance point from day 3, add that to day 2, add that to day 1, and average them together to get day 0 (today) balance point?
You are correct. That is the right way to calculate. IT is as simple as that. From the current day you take the previous 2 days High and Low and divide by 2, that will be TODAYS current trading value. Tomorrows 50% point will be TODAYS and YESTERDAYS Highest High + their Lowest Low divided by 2.
You do not aggregate 2 days with 3 days etc. Each new trading day has its 50% point calculated from the previous 2 days highs and lows.
The ideas is to leave 2 -4 previous 50% Balance points on the chart is that these lines can be REVISITED thus giving you S/R lines to trade off. As you advance from day to day you can just drop off the 3rd or 4th previous lines to be replaced with a new one.
I hope this clarifies the idea. Take a look at post #12
Attached chart of 6B is from today 21th April, show 3 lines going back 3 consecutive days. We now see that today trading is heading up to the 50% Balance Point that was 3 days ago.
I imagine we will hit it, and if so there could be a nice trade to the downside. Lets watch and see.
Ok folks, as predicted we got a massive sell off on 6B (see post 57), 6 pips below the 50% Balance point and also a double top from the previous high that also made a big move down after almost hitting the 50% point.
