mid-term prospects, page-3

Hi Rhodes,

Just found your post. In pitchfork theory, when price fails to reach the median line on an upwards sloping pitchfork then falls to and breaks below the Trigger Line, it is a (strong) signal to sell. In this case, the price did not break below the Trigger Line, but touched it exactly on 29 March before reversing and climbing away. The Trigger Line is aptly named as a breach of the line as described above, (or the reverse situation of price breaking above the upper trigger line of a downwards sloping pitchfork) is widely regarded as a strong 'trigger' to sell or buy, as appropriate.

Reaction Lines are less precise and tend, to my way of thinking, to indicate areas where price highs and lows are formed. That is, price will tend to form alternating highs and lows within a few trading sessions of successive Reaction Lines, but not necessarily on them. Think of them as marking the points at which a Sine curve would intersect the median line of the pitchfork, where that Sine curve marks the natural rythmns of highs and lows in the price as it progresses along the direction of the median line. I regard Reaction Lines as broad indicators only, but they are useful when used in conjunction with other indicators.

Good to hear from you. Roll on Brissy 4!

Regards,
Bones