Chart reading, commentary, interpretation, verbalization

In the high-price zone and the low-price zone—if you don’t understand this, you’d better start over.

First of all, I must apologize.

I deliberately used a strong title to grab attention.
If I made anyone feel uncomfortable, I’m sorry.

However, in this article I intend to deliver what’s truly essential.
I would be glad if you read until the end.

“It’s already in the high-price zone, so sell from here.”
“Prices have fallen quite a bit in the low-price zone, so time to buy.”

Are you deciding to sell or buy just by whether you’re higher up on the chart or lower?
If you are, I must tell you something tough.

There are highs even in the high-price zone.
There are lows even in the low-price zone.

If you look at highs and lows without understanding this meaning,
Dow Theory will never become usable.

Please check whether it applies to you

□ You sometimes think “sell because it’s in the high-price zone” or “buy because it’s in the low-price zone.”
□ When they say high, you imagine the very top of the chart.
□ You’ve never paid attention to the lows within the high-price zone.
□ You’re unsure where to take a pullback low or a pullback high.

If two or more apply to you, what’s written in this article is the cause of your confusion.

“High-price zone” and “high price” are different things

First, distinguish the terms.

High-price zone / Low-price zoneis about the position of price.
In broad terms, whether the current price is toward the upper part or the lower part.

Highs / Lowsare about the shape of the wave.
A high is where price rises and stops; a low is where it falls and stops.

These two are completely different things.

Within the high-price zone, there are also waves

Prices do not move straight even when they reach the high-price zone.
Within the high-price zone, they rise, fall, then rise again.

In other words, there are highs and lows even within the high-price zone.
The lows within the high-price zone exist properlyas important lows.

In an uptrend, if prices rise to the high-price zone.
As long as you do not break the lows formed within that zone, the uptrend continues.
Even within the high-price zone, that low is an important pullback low.

Conversely, in a downtrend, even if prices fall to the low-price zone,
the downtrend continues unless the highs formed within that zone are surpassed.
It is the pullback high within the low-price zone.

Deciding to “sell because it’s in the high-price zone”
is the same as assuming you’re at the top of a mountain and saying “it’s going down from here” even though you’re still on the ascent.

Judge by the highs and lows of the wave, not by position

Whether you’re in the high-price zone or the low-price zone can be a rough guide to the overall trend.
However, deciding to sell or buy is not based on position.

What you should look at is the highs and lows within that position of the wave.

Did the price break the low within the high-price zone?
Did it exceed the high within the low-price zone?

Judge by the wave, not the position.
This is the first step toward making highs and lows usable.

What you can learn from the video

・How to take the high and low within the high-price zone in actual charts
・How to view the highs and lows within the low-price zone
・Differences between “high-price zone,” “low-price zone,” and “high” and “low”
・Steps to judge by the highs and lows of the wave, not by position

Who this video suits

・People who are losing by thinking “sell in the high-price zone” or “buy in the low-price zone”
・People who always wonder where to take the highs and lows
・People who want to be able to use Dow Theory on actual charts

Related articles to deepen understanding

From here on, I will carefully explain using actual charts in video form.

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Explanation videos