Interactions between gold HP scores and strong support/resistance zones

This point has been mentioned in webinars and is well illustrated by gold over the last 3 months or so.  The attached figure shows there have been three HP signals at or above the recommended threshold of 14 between August and now.  During this period, gold has been fluctuating between strong support/resistance lines at about 1180, 1200, 1215 and 1240.  All HP signals have almost immediately hit strong support/resistance and gone no further. 

This underlines the importance of considering s/r lines when thinking of entering a HP movement.  This is one of the last criteria to be met on the checklist:  even with a high HP score, the movement may not develop if there is strong support/resistance in the way.

It also highlights the importance of considering whether you use a HP or S/R bracketing strategy when the market is basically moving sideways.  S/R usually also gives earlier entry too.

Yesterday's score was 12 and it is hitting resistance at 1240 again.  If it penetrates this with energy then the score should increase and there is room for HP movement above, or of course it could bounce back down.