The floor that feels safe because it keeps holding

What the Lesson Covers

1. 0:00A price that keeps holding feels like support. Every hold is some of that support being spent.
2. 0:06The shape. Lows stopping at the same level more than once, and highs that each arrive lower than the last, converging toward a point on the right of the chart.
3. 0:17Why it forms. The floor is a buyer with a fixed order. The falling highs are sellers who want out more than they want the price, and one of the two runs out first.
4. 0:27The levels that matter. The floor, the line over the falling highs, the most recent of those highs, and the height of the triangle at its widest.
5. 0:37Where it completes. A close below the floor completes it, usually on heavy volume as the defending orders all fill at once. Above the last lower high, the sequence is over.
6. 0:48How often it follows through. Sixty-one to sixty-seven. In a strongly rising market, take the bottom of that band and no higher.
7. 0:57The same shape failing. The reclaim. Price drops below the floor, nothing follows, and it is straight back above — with everyone who sold the break now on the wrong side.
8. 1:08The tells. A higher high inside the triangle, a break that closes back above the floor, or bounces off the floor that are getting bigger.
9. 1:18Count the touches. A fourth test is defended by much less than a first.