26.09.2018 - What happened after the video
In the chart below, we see two opposing forces:
If price climbs above it, then price will proceed up to the white centerline before a potential resistance comes into play again.
These are just the short term targets.
Of course, a U-MLH (Upper-Medianline-Parallel) is always possible to reach and very often, price will do over time.
So let's observe and learn from this example.
As you can see, there's not much one need to draw, if he knows about the law of Action/Reaction and how to apply it without any modification or "tuning".
(IMO, the party seems to be over soon in the S&P)
Here are two different charts to study for you.
Both describe the market with the same principal, but in different ways and...
...they lead to the same point.
Is it by accident?
To find out, just use this technique and start to work - make your hands dirty ;-)
If you really dig deep into the Rabbit hole, then prepare yourself fore some creepy experiences in the sense of how Chart Analysis can change your trading ...
I highly recommend this article I wrote about Action/Reaction:
Find out more about Action/Reaction here:
"For every action in our world, there is a equal and opposite reaction"
This axiom (hard and fast, unbudgeable rule) stems from Newton himself.
Applied to trading, we find that this rule also works on the charts.
Why do they work on the charts?
It's a hard and fast rule in our world we live and this rule applies to everything, period.
How can we take advantage in trading of this Action/Reaction rule?
By knowing how to apply it, which needs a thoroughly research - which I have learned and done by myself many years ago.
On the chart you can see how price is (re-)acting at the projected lines.
These lines are projected from the past, giving us a clue where price will react.
But just with plain reaction at the lines, how can we trade?
How can we know when to go long or short?
We don't know, and we never will know when to go long or short.
In fact, we not even have to know to make good profits!
What we can do is, create rules around these reaction lines.
Rules with good Money & Risk management.
Gues what?... I have done it already.
If you want take a sneak-peak behind the curtain, then I'l offer you a free BLUEPRINT on how to use the trading tools I use today for this method.
Subscribe to the ForkTrading BLUEPRINT and start to learn this simple, but powerful trading method, including videos, charts and learning material - all FREE!
This is a great opportunity to observe, how price will (re)act at this "R" line!
Take your time and observe this market, as I expect some reaction here.
Either a bounce back, a zoom and retest, or even a straight march to the next one.
Learn To Earn...