2017issue C058-11
Price mirrors as a fold-test for reversal targets
A price-mirror folds earlier peaks, valleys, and congestion across a vertical line so later action can confirm or kill the left-hand hypothesis. Head-and-shoulders and double-bottom cases show the reflection as a price sketch that is often closer than the timing sketch.
- A price-mirror folds the left-hand half of a reversal pattern so later peaks, valleys, and congestion can be checked against earlier ones at similar prices.
- Launch-and-landing and measured-reflection use the earlier swing as a price sketch; matching levels are often closer than matching dates.
- Reflections show up more often in choppy, two-way action than in one-direction trends, and a live fold-test can still tag a later measured peak when timing or an expected retrace fails.
- As a target tool, a price-mirror can sketch where price might go and roughly how long it might take, yet later action can fall short of that sketch.
Reading the right-hand half
A price-mirror is a visual fold of prior price action across a vertical line so that later peaks, valleys, and congestion can be compared with earlier ones at similar prices. The fold-test then checks whether later price action matches the earlier half of a pattern in price more reliably than in calendar time.
Launch-and-landing adds a second reading: a move into a reversal pattern often returns toward the price area where that move began. Measured-reflection uses that earlier swing as a sketch of a later price objective, not a clock for when the objective will arrive.
Head and shoulders as a vertical fold
A head-and-shoulders top can be read as a vertical fold in which the left shoulder, head, and launch area have counterparts on the right at similar prices. In that head-and-shoulders example, the post-reversal landing sat near the same price as the October launch, so the full circuit looked symmetrical in both price and time around the fold line.
Matching peaks can share nearly the same price while differing in how far they sit from the fold line, so price-level guesses can be tighter than calendar-timing guesses. Those reflections are another way to mark support and resistance. Shoulders can stall near the same overhead zone, and congestion on one side of the line can reappear near a similar price on the other.
Twin bottoms and local mirrors
On a weekly chart, twin bottoms can share similar prices without matching distance from the fold line. Folding the left side onto the right sketches a later price more usefully than a later date.
A small double bottom can itself be a local price-mirror, with the two valleys near the same price and the approach on one side resembling the departure on the other.
When the path skips a step
A live fold-test can miss timing and even skip an expected retrace while still tagging a later measured peak. A price objective can land even when the path does not.
After a later head-and-shoulders bottom, a new fold line at the head can again pair later peaks and valleys with earlier ones, forming another head-and-shoulders structure.
Price sketches closer than time sketches
Used as a target tool, a price-mirror can sketch where price might go and roughly how long it might take. The price estimate is often closer than the time estimate, and later action can fall short of the sketch.
Editorial reading: keep the left-hand map as a hypothesis until later action tags, misses, or falls short of the reflected levels.
All readings on this track · 12 readings
- 1990Constructing volume-budget targets after a breakout
- 1991Constructing price objectives from measured moves and swings
- 1997Measuring chart pattern height for breakout targets
- 1998Double-top confirmation before the measured move
- 1998Writing entry, target, and trail as one procedure
- 2005Constructing flag and pennant measured moves
- 2006The swing rule as a measured move beyond a broken barrier
- 2011Prove the X7 turn before measuring the reversal
- 2014Constructing an intraday flag breakout as one procedure
- 2017Price mirrors as a fold-test for reversal targets
- 2017First swing box as a measured-move exit ruler
- 2020The recovered swing high as a halfway-reaction checkpoint