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6 trading days ago I calculated the mean of AKS as $9.13. This price was derived from the closing price taken over 38 (n) days. The decision of using 38 as a base period was determined through the development of the wave structure. Since we are attempting to trade a wave 3, the time period of wave 1 development is used due to the natural link of impulsive waves.
The price consolidation within the box occurs over 6 days and is expressed in 60 minute bars. The price resistance occurs at $10 and the support level is $9.35. 0.82 is the 50% midpoint between these two levels.
The price consolidation within the box occurs over 6 days and is expressed in 60 minute bars. The price resistance occurs at $10 and the support level is $9.35. 0.82 is the 50% midpoint between these two levels.
10 or 9.35 +/- 0.82 = 9.175
Our calculated mean was inaccurate by 0.045 over the past 6 trading days. This serves as evidence that when a mean is derived from a non random time period, it can have an implicit role with price development.
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