This is going to be a long post. We will make notes, see it in charts and understand the core logic. So, read it when you have time.
Before anything or before counting it to 4, we need to understand the exact place it starts from. If we look at any naked chart, there are hundreds of candles and price is always fluctuating, so getting confused or getting driven at wrong places is very normal.
How J views the market is through key points: where we can start to operate. That's what the breathing room is, the starting point. The reason why it's called the breathing rooms?
As the name suggests: breathing rooms means somebody is taking a breath before continuing the run. Imagine a man climbing up a mountain, don't you think he will stop take a breath and then continuing upwards. Now, the question is if we want to join in his journey in the mid: where's the best way to catch up. When he stops, right?
That's the exact same thing with the markets. So, our goal is fairly simple: understanding what's happening now to predict the future.