Our Jin System consists of 5 Risk Levels to project the support/resistance of stock price. The chart below depicts the potential flow of the Risk Levels. In a proper cycle, Risk Levels flow from 1 to 5, under certain conditions, it may flow in a non-sequential manner.
Let’s take Ezion as an example below:
Although Ezion is clearly trading outside the box for all the 5 Risk Levels, I have to remind everyone who is reading this post that most of the time after Risk Level 5 everything will get back to beginning of Risk Level 1 again. Why do I have to caution you? This is because from Risk Level 5 moving to Risk Level 1, it will most likely be range trading.
Again I like to cautious trading near Risk Level 5 the swing can be wild, it is better to use this checklist to evaluate the risk/reward ratio.
eg Ezion is trading now at price zone around 1.26. It could be within a few days or weeks that it hits where “most report” has mentioned 1.50. Anything under the sky is possible, meaning it can easily move within 3 to 4 days with just 10 cents price swing everyday before going into sideway range.