Disliked{quote} Hi Matts Micro , thanks for you valuable input , but I don't get which swing you mean , or all the swing ? This was important as I can know whether my read of strength and weakness are correct . I do compare and contrast all the swing to previous resistance and what I see was most of the time buyer dint show their efforts to absorb or when compare to previous it has much weaker resistance ,then all of a sudden when price success in break thru IOF , it just continue with no correction down further , I dint mean this statement for all swing...Ignored
The Green lines refer to areas where price has gone up (and down) almost unchallenged, meaning there wasn't much consumption from sellers. This means that when the price once again turns in the sellers direction on the correction, they haven't established any ground work ie structure or accumulation for further pushes on the down side. They simply haven't got any money in the market yet.
Now look at the Yellow lines. These areas represent where the opposite side have said "nope, we aren't going to let you take this price without a battle". This means even when they are losing ie price goes against them, they have invested money into the market, it is still in there, they have accumulated to their positions. Meanwhile also in these areas, the side that wins has had to invest more money to keep their push (the downside in most cases here) going.
Now when the time comes for the price to push back in the other direction (upside in most cases here) the buyers have already got money in the market (they have accumulated) from fighting the down side making the push topside easier. The sellers are exhausted from the push downside and fighting all the way. The market favours the strong and backs the buyers (in this case) giving them the edge to push prices higher.
The lines on the chart aren't great but I hope you get the general idea. I'm better with a running chart and candle sticks I can see. As per norm I am always happy for anyone to jump in and correct me, I'm still learning and this is just my take.
Hope this helps, Matt.
Edit: Not sure about the almost horizontal yellow line at structure at right of chart, prob not a good line.
Edit 2: I forgot that I mentioned structure. When the trend looks like it is going to go the other way price has a habit of pulling back to the strongest structure so the previous trend can exit their positions with minimal losses. In this case identified by the orange box.
As the lights go by so too do the shadows move
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