Basing Formation & Positional Warfare

The concept of a the basing formation compared to that of positional warfare, is rather interesting as we were essentially tracking a cone of volatility. This subtle break has done significant technical damage (i.e. attack on late sellers and correct use of support), and will often be rewarded with complete liberation.

Here it would also be worth thinking about order flow and blockades. In positional warfare the plan would be to let sellers extend the blockade lows, and as late sellers follow through, trap them with countermeasures. See the following chart, which is instructive from beginning to end of how to 'trap' an opponent, and which I often consider as the stem game for this new philosophy of charting.

A very plausible idea; however with the immobility of sellers at the lows greater than ever after we expanded our 'cone of volatility'. Buyers have played very economically, the occupation of 1.380x will be a very bullish signal and imply painstaking exploitation of sellers. To force capitulation and trigger sellers to regroup we will need to breach through the 50MA.

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A solid end to the week...