Price Projections, Part 5 by Sylvain Vervoort
Exploring Charting Techniques
Here in part 5 of Sylvain Vervoort’s “Exploring Charting Techniques” series, he looks at techniques such as measured moves, Fibonacci projections & retracements, and daily pivots to estimate future price levels.
Price projections estimate future price levels. Last month in part 4, I discussed some basic price projection techniques based on support & resistance and trendlines. But there are also other methods to project prices. I’ll start with measured moves.
WHAT IS A MEASURED MOVE?
A measured move is a price projection based on a previous price swing. The idea behind it is that any new price swing is of approximately the same size as the previous swing. For the definition of the swings, I will use my SVEHLZZCandlepattern zigzag indicator that was introduced in my article in the July 2013 issue of StockS & commoditieS. In addition, I will use my 1-2-3 wave count as introduced in my article in the June 2013 issue of Stocks & Commodities as a reference to calculate measured moves.