We see two opposing forces.
The orange A/R lines and the white Fork.
The orange dashed Centerline will be first resistance.
But the good news is, that if price can manage to jump above the orange Centerline, then the next target is the white Centerline.
And once above the white Centerline, stage #3 is the orange U-MLH (Upper-Medianline-Parallel).
This is a natural way how Bitcoin comes to live again, producing swinging volatility which we can trade with simple rules.
Happy harvesting §8-)
If you like to learn more about the Pitchforks and how they produce great trades, then here's how you can get your free beginners course:
1. Register for the FREE MEMBERSHIP on the homepage
2. Login and start the course
Happy learning & earning.
Price reaches the Centerline over 80% of time. With this fact alone one has a great measure tool for profit targets, or a good hint where to hide stops.
The white Pitchfork's Centerline was a great indication that price will move in the opposite direction, after it recaptured it and closed above it again.
Now price is dealing with
a) the grey horizontal balance line
b) the orange Centerline
c) the up-sloping yellow Mini-Fork
If price close below the Mini-Forks L-MLH, then a short is in play, with the natural target at the Centerline of the white Fork.
If price climb above the orange Centerline, then the target will be the U-MLH of the white fork.
If you not have any positions in DAX -0.62% , then relax, lean back and observe how the rules play out.
If you like to get trade ideas by email, just click this link to get to the Homepage to register for the quarterly or the annual ForkTrading Membership.
The white Fork describes the context and where price potentially can pullback to. As we see, price reached the Centerline two times. Now, the third time it failed!
The yellow steep Fork describes the current flow, which looks like it is to the upside. BUT: watch, price is outside the L-MLH. Even worse, price tested the L-MLH a couple times now, but could not push through into the Fork again.
The Orange Modified-Shiff Fork describes the Pendulum-Swing. The U-MLH got breached, but price fell back into the Fork again. Usually if price falls into a Fork again, there is a very high chance that price will reach the Centerline!
The red Mini-Trendline got broke too...price is loosing it's traction to the upside.
All this talks for a coming Pendulum-Swing to the downside.
The only part that makes me go ummmhhh.... is the coil (white sidways action). Of course, the trading above it could just be a fake and all the Bulls get washed when the party is over and the coil gets killed on the potential down thrust.
However, it looks to me that this party finds it's end soon...
Just for chuckles, let's see what kind of a RIsk/Reward we had, if we where to enter short right now and we base our target ner the Centerline: 1:4 seems not too bad for my gusto.
Maybe I join the chute and have fun...
BTW: ...my new Bread & Butter Strategy course is coming soon. So take the time and get the ForkTrading BLUEPRINT for free, so you can follow-up on the new course - Dont Miss This One! §8-)
Coments currenty don't work - My Web Hoster Is Hunting The Bug...
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:
This is a clear sign that price has spent enough time in the South and is planning it's journey back to the North.
Until price leaves the track, which would be the case after closing below the yellow dotted Sliding Parallel (SL), the path of price is clearly to the upside. Next Station: Centerline City ;-)
Happy Profitable Week Folks. Emilio
Let's compare and check, how the rules work in this Russel Chart:
Price missed to reach the "next line". We can expect a pullback farther then from where price came.
If the U-MLH/L-MLH is broken, price is likely to go to the next line, which is the Warning Line
Here Price is at the upper WL1 the upper Extreme = Price is extended, stretched. We can expect at least a pullback, or even a move to another extreme, the Lower-Medianline-Parallel (L-MLH).
Rule Nr. 1
Price moves back to balance, to the Centerline in over 80% of all occurrences.
If price breaks the CL or any other Line of the Pitchfork, then we can expect a Test/Retest.
Here we are with the naked truth, that we can trust the ForkTrading Rules.
If we know that we can lean on hard written rules, we are able to develop a serious trading method out of it. We can research the so beloved "Setups". And we don't have to fear stops anymore too!
What's next with the Russel?
We have the first Test of the Centerline.
As far as I see, there is no major Swing broken, just pierced!
(...remember my Swing/Pivot rules? Watch the stair stepping blue lines below the pivots.
And if you don't know the rules by now, you should go back an learn them if you are already a Free ForkTrading Member (...if not, subscribe below...).
This means, that there ist no confirmation of a turn in trend, even if it seems that the markets are extremely extended up in these price levels here.
Because we can't predict the future, but act on facts, this is what I do:
1. don't let me fool to believe that the trend has turned to the south already. There is no confirmation so fahr, period! (It doesn't mean that it could be the case in the coming days and weeks either, but not now.)
2. If the market lose steam and pulls back a little, I expect a Re-Test of the Centerline.
3. If price moves above the Centerline, then this could be a tell that the Bulls are in control. I would expect another Test of the U-MLH!
So, I sit on my hands and wait until the market is telling me more information.
This is a sneak-peak into the rules and the world of the Pitchforks, and how great they work in step with the ruleset.
Ohh...please, could you do me a little favour?
...please share this place on Twitter, Facebook, LinkedIn etc., so others can profit and learn too from these resources! I think it's a little price you "pay" for what you get ;-) Thank you very much!
Not a ForkTrading Member yet?
Not went through the Free ForkTrading BLUEPRINT?
Subscribe here - it's free, except your energy and time you need to dedicate to learn to earn §8-)
As far as I can interpret the facts from the chart, I would say that there's a potential support now.
Very nice how price reacting at the Fork lines.
The red resistance line must be broken first, not just pierced.
The target is at least the Centerline.
Let's observe together how this develops.
...and here's what happened after the analysis.
Remember that it is really important to learn, not just to trade.