Do VPs disappear if an opposing signal is confirmed or do they remain active on the next run with a new deadline date?. For example, say we get a sell signal this week and then a new buy signal next week. With that new buy signal, will the market still have a 1425.20 VP but have an new and extended deadline for the VP? Or are VPs only created at the time of the new signal at a level dictated by new market conditions? Understandable, there might be a new lower VP, i.e. if we got a sell signal and sold off 100 points and then a new buy signal, I would expect at least one VP somewhere below the 1425.20, but is that 1425.20 always going to be there at some point in the future?
That's a very excellent question... and as you suggest early in your question, a currently existing VP no longer exists after a new sell or buy signal is confirmed... the old VP simply disappears and that particular market price then means absolutely nothing... while a VP is vitally important during that particular market cycle, the VP becomes absolutely meaningless and has absolutely no significance whatsoever after a new signal is confirmed... therefore, once we have a confirmed sell signal, the 1425.20 price is just another price like any other price... so, during any current cycle, the VP actually attracts the market to it, and then if/when the market hits the VP, it reverses its field and repels the market from it... but, after a newly confirmed signal, that same VP is rendered meaningless and has no further gravitational attraction or repelling forces...
GZ |
