MitkyeGood on you for having a go Mitkye - your forks look good....

  1. 1,996 Posts.
    Mitkye

    Good on you for having a go Mitkye - your forks look good. WOW not so much.

    Firstly - price will return to a good median 80% of the time IF it is a proven multi-pivot line - otherwise it is a whatif line.
    When price approached a median it will do one of three things
    a. pivot b. gap through c. zoom through.
    If it zooms through, often it will return to backtest. Often it will oscillate around the median before moving on one way or the other.
    AR lines are derived by picking a significant centre line - then picking parrallel "action" lines to the left that pick up swing highs or swing lows - they don't have to be equidistant so long as their corresponding reaction line on the right of the centre is the same distance from the centre. I've included an example using WOW.

    If Sp breaks the lower tine of a fork, it is a sign of weakness - relative to the fork.
    On your little black fork price back tested the median once - tried a second time and failed so in that case I would expect it to head for the lower tine. It may pivot to backtest the big black fork first - but I doubt it will break back in the short term - all the indicators you've included are bearish also.
    Have a good read of the link I've included in my signature. It goes in depth on interpreting pitchforks and various methods of drawing action/reaction lines.


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