Drummond Energy Bands
The Four Components of the Bands
The Drummond Energy Bands provide the trader a reference to where the energy’s most significant support and resistance is right now. This is the new standard for technical analysis!
The upper magenta band contains price and provides the trader with organic resistance energy. The band provides an excellent directional visual reference to price and when combined with the upper yellow, create a strong area of resistance. (Overlap)
The lower magenta band contains price and provides the trader with organic support energy. The band provides an excellent directional visual reference to price and when combined with the lower yellow, create a strong area of support.
If you are looking for THE EDGE in your trading, the e-mid is the answer. The e-mid is the white dotted line in between the upper and lower magenta. The e-mid provides the trader in advance a clear opportunity to know where the buyers and sellers are. It does this by providing strong crests of resistance and valleys of support. In the chart above you will notice the horizontal pink line crest of resistance (drawn by hand).
The dots are simple to use when viewing a top or a bottom. You will note in the chart above that the upward movement of the dots changes and hooks down to transition into a sideways movement. This is typical of a market struggling to pop higher. They visually provide a quick reference for stop placement also. The dots also change to blue when they have strong upward energy and have left the lower magenta. Conversely they change to red when they have strong downward energy and have left the upper magenta. There is alot more taught about the dots and how to gauge the flow of energy in the Master of The Universe Course.