MSTR PL dot push and refreshThe essential element of the Drummond Geometry is the PL dot (Point and Line). This dot is a short term moving average that is calculated as the average of the last three candles averages of High, Low and Close. In Drumond Geometry, the open plays no role.
PL dot = Avg(Avg(H1,L1,C1) + Avg(H2,L2,C2) + Avg(H3,L3,C3))
The key difference with other moving averages is the fact that in the Drummond Geometry, the result of the above calculation is shifted by one bar in the future, thus one knows in advance where the PL dot is for the upcoming bar.
The PL dot is very responsive. When there is a trend, then the PL dot is sloping in the diretion of the trend (up or down) whereas if the PL dot is horizontal we have a congestion condition in the market.
The PL dot offen sits at the top or the bottom of the bar, pushing the price up or down in a so called "PL dot push". In the MSTR weekly view, one can see how the PL dot was support since September and was pushing the price up until now.
The trade one could have taken is to long around the PL dot and put a stop loss couple of point below. The target would be first the Envelope Top and if the PL dot had "sufficient strength" then the final target would have been in the Area 6 (Exhaust zone). One can see how the exhaust zone acted as resistance and made price go back to the PL dot for a "PL dot refresh". Thus when price strays away from the Pl dot, the second pattern to trade would be the "PL dot refresh".
Imagine the dot as container of energy which waxes and wanes depending on the curcomstances. So when price travels away from the PL dot, it tends to "refresh" itself and confir wheter there is still energy for the move to continue.
