Andrews Pitchfork (Median Line)
WRB gap 2 zoomed the yellow center line. Andrews rules applies and when price zooms it will often return. Here it returns to the line and also the WRB gap origin where a sell may have been entertained. Notice the tail/OB on the way up to the yellow center line. This represents bulls and WRB gap 3 took those bulls out. A return to this area was another potential sell. Another WRB gap was formed a couple of days ago and its origin is shown with the grey/blue rectangle. R:R is important so the MPL as mentioned earlier is now coming into play.
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{quote} I like this one better. {image}
Before I apply forks I look at the market in general. At the light gray horizontal it is apparent that buyers took out a long standing area of sellers with a large WRB gap. This is still a controlling structure. The OHLC is not visible on this chart and so it is not what I would use to trade. But zooming out a bit can give one a an idea of what the market is doin overall. {image}
{quote} Identifying relevant swings is next. The blue swings are similar and the green swings are similar. The last green swing is not complete as it is not yet apparent whether it will turn down or continue. Identifying swings in such a manner also helps to identify relevant pivots. Otherwise one can get bogged down trying to figure out which pivot is important or using any pivot just to satisfy one's predetermined view rather than an objective view. Keep in mind the light grey line below. {image}
