Forex encyclopedia

The biggest part of understanding the market in the same light as I do is understanding when the market begins to trade higher or lower. The objective, somewhat contrary to everything you've seen in the past, is that I look to sell when the market is moving up and I look to buy when the market is moving down. The trick is that when the market is moving, whether it be from the daily movement or the retracements into those daily movements it will always change direction. It's the change of direction that will get you in long at the bottom of a movement and short from the top of a movement, that does not mean we will be trying to pick tops or bottoms in the movements but rather we will look for selling opportunities when the market is moving up and the reverse for buying entries when the market is moving down. We do this by identifying when the market begins to trade lower after it's been moving up and to trade higher after market has been moving down

Tirone levels represent a sequence of several horizontal levels decreasing in succession. This method is used for determining support and resistance levels within trading range at definite moment of time. Tirone levels were elaborated by John Tirone. In practice, TL are applied to improve visual reception of price movement. Also through these method of technical analysis one can generate signals for opening positions. For example, if price reaches TL from upward – it is an alert for purchase and a signal for sale is received, when prices approaches from bottom.