Protocols and Diplomatic Channel:
When we know about the Kolachi Concepts about Protocols of emas and Diplomatic Channel we have a definite edge over ordinary trader.
Those who have ever read about Fluid Mechancis or Dam spillways, they can better relate the price behaviour in the Diplomatic Channel like Hydraulic Jump.The price flows down like water from the spillway, gets floor at the lower ema of the channel and then comes the hydraulic jump to dissipate the energy of the fall, so consequesntly price rises up and when it touches the upper ema of channel it almost loses its hydralic jump energy and then again it comes down.
Those who do not understand hydraulic jump I will explain it in price terms.
Please look at the daily chart of aussie.You can see that price touched ema200 (the lower ema of DC100/200) and then jumped up.The rise upward was in obedience of protocols as there was cross due between ema21 and ema55.The price touched upper ema of DC100/200 simultaneously when cross gone through and the price slipped down again.
Now the protocols of emas held ema21 from crossing ema200 because a cross between next higher emas that is ema55 and ema100 wa sdue.If this cross would have happened then ema21 would have been allowed to cross down but seems that process has been intercepted for a while as cross is not through but going parallel and ema21 is also parallel to and seems heading up.Therefore , the wma5, the slave of ema21 has been called up by ema21 as it has been rejected by ema200.
kolachi
N.B.Kolachi Method and its Rules are copyrighted (2006) under law