The thicker the wall, the stronger it bounces back—does that hold true? I tested it

Hello, this is Naoto. Today I’ll talk a bit longer about horizontal lines.

I view the market as something like stairs.

Rates move from rung to rung, and there’s a wall in between. The wall is made of rubber, so when you hit it, it might bounce back, or it might break through.

How hard it pushes back is determined by the thickness of that wall.

With a hard wall, there are only two possibilities: you can pass or you cannot.

With rubber, it becomes a matter of how much it rebounds and how much it penetrates. When you think in terms of quantity, you can see how far it might stretch and where to cut it, right?

So what is the thickness of the wall?

5-minute, 15-minute, 1-hour, 4-hour, daily charts. When you draw zigzag peaks on each, there are places where, despite different timeframes, the peaks gather at the same price.

Scalpers, day traders, swing traders. The timeframes they watch may be different, but they’re all concerned with the same price. I consider these to be thick walls. I also weigh whether the figures are round numbers.