Color Coding Charts/Lines With Points Is Helplful

Here’s a 2m chart ofTuesday’s activity.  The blue lines represent the initial balance 9:30-1030am.  The red line is the Point of control or where the most volume took place during the trading session.  The red shaded area is the Opening Swing.  This area represents the first indication of where buyers are stepping in and where sellers are stepping into the auction. The turquoise colored lines represent the area within where most of the days action took place.  Finally the green shaded area and top and sides of the red shaded area, represent the highs and lows for the day.  I look at the charts like this each day for clues to how the market is acting.

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