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The One: Price Action and Reaction

  • #2,101
  • Oct 17, 2018 11:51am Oct 17, 2018 11:51am
Just to stick my nose into others business.

One of the things that markets do often is create same sized retracements thru the course of a swing. One of the challenges of using the median lines is that which one to use where. My preference is to use the modified schiff as the swing is flow in it's chosen direction. In my picture the first set of lines is a double out, then back to the original center line. After you draw with the modified lines you notice the center line reversals are quite common. The second is just ABC looking for D.The other tool I like to apply when I'm looking at or for a like size retracement is the 100% extension tool. Retracement shapes are almost always different, but they end up about the same number of ticks. After D, professor Anderson's 5 pivots to the center a the turn. Easy after the fact.
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  • #2,102
  • Edited 12:25pm Oct 17, 2018 12:00pm | Edited 12:25pm
My current view of things. 1 hour chart
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  • #2,103
  • Oct 17, 2018 12:21pm Oct 17, 2018 12:21pm
Quoting mbrown
{quote} Thank you. There is a rule that states if price approaches a median line and fails to reach it (red circle), expect price to reverse by a larger distance than the distance of the failed approach. Should the distance be measured vertically or diagonally? Thank you. {image}
I usually do mine diagonally to mark out the space. I didn't see these sliding parallels on the fly, but they did work correctly.
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #2,104
  • Oct 17, 2018 12:23pm Oct 17, 2018 12:23pm
EUR 1h break down
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  • #2,105
  • Oct 17, 2018 12:24pm Oct 17, 2018 12:24pm
Quoting Sossos
Just to stick my nose into others business. One of the things that markets do often is create same sized retracements thru the course of a swing. One of the challenges of using the median lines is that which one to use where. My preference is to use the modified schiff as the swing is flow in it's chosen direction. In my picture the first set of lines is a double out, then back to the original center line. After you draw with the modified lines you notice the center line reversals are quite common. The second is just ABC looking for D.The other...
Thank you for joining us, feel free to share. Great work.
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #2,106
  • Oct 17, 2018 5:52pm Oct 17, 2018 5:52pm
The exception is that the standard median line works sooo well on expanding pivots and pendulums. Just my 2 cents worth.
  • #2,107
  • Oct 19, 2018 8:34am Oct 19, 2018 8:34am
Quoting eaglestar
EUR 1h break down {image}
EUR 1h update
Lower median line acting as support turned to resistance. Continued down to a 1:1 continued move.
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  • #2,108
  • Oct 19, 2018 8:58am Oct 19, 2018 8:58am
Watch the area in near the arrow again as possible resistance intraday
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  • #2,109
  • Oct 21, 2018 9:37pm Oct 21, 2018 9:37pm
Hello eaglestar and fellow traders

Thanks for starting this thread and being dedicated for it for quite some time.

I wanted to post and share some price action analysis of some pairs but before I do that may I ask couple of questions pls:

1- Is the thread restricted only to majors (only USD pairs). What about crosses?
2- Do I have to use pitchfork in my charts. (it is fine if it is a necessity). I used it before but I just like to concentrate on major patterns on HTFs within channels/TLs, S/Rs, etc . I like what I call "A constrained/contained environment). From practise I find that the key is in identifying those levels which is a very subjective thing. However, I don't mind using pitchfork as well.

Thanks
  • #2,110
  • Oct 22, 2018 7:44am Oct 22, 2018 7:44am
Quoting mtharwat
Hello eaglestar and fellow traders Thanks for starting this thread and being dedicated for it for quite some time. I wanted to post and share some price action analysis of some pairs but before I do that may I ask couple of questions pls: 1- Is the thread restricted only to majors (only USD pairs). What about crosses? 2- Do I have to use pitchfork in my charts. (it is fine if it is a necessity). I used it before but I just like to concentrate on major patterns on HTFs within channels/TLs, S/Rs, etc . I like what I call "A constrained/contained environment)....
This is a friendly thread and although it is mostly dedicated to Median Lines (Andrew's Pitchforks) and action/reaction there is likely room for related material. It is not restricted to majors.

Many who start out with Median lines are unaware of the large body of knowledge that surrounds median lines. I personally use a great deal of price action that occurs at a bar level, swing level and larger structure level in conjunction with median lines. Eaglestar got me started and now I am a devoted student of Shane Blankenship at market geometry who teaches not only median lines but an objective way of interpreting very specific price action that occurs at all levels. Again PA occurs at bar/candle level, swing level and structure level.

So to sum it up I think we'd be delighted to see your take.
  • #2,111
  • Oct 22, 2018 11:17am Oct 22, 2018 11:17am
Quoting mtharwat
Hello eaglestar and fellow traders Thanks for starting this thread and being dedicated for it for quite some time. I wanted to post and share some price action analysis of some pairs but before I do that may I ask couple of questions pls: 1- Is the thread restricted only to majors (only USD pairs). What about crosses? 2- Do I have to use pitchfork in my charts. (it is fine if it is a necessity). I used it before but I just like to concentrate on major patterns on HTFs within channels/TLs, S/Rs, etc . I like what I call "A constrained/contained environment)....
I can agree with Winston, feel free to post and show your observations. This is a thread dedicated to Market Geometry, so anything that you want to share feel free.
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #2,112
  • Oct 22, 2018 11:18am Oct 22, 2018 11:18am
Quoting eaglestar
Watch the area in near the arrow again as possible resistance intraday {image}
Follow Up chart
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #2,113
  • Oct 22, 2018 11:41am Oct 22, 2018 11:41am
EUR

Action Reaction update

New fork on basic chart
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #2,114
  • Oct 23, 2018 7:15am Oct 23, 2018 7:15am
@Winston @eaglestar

Thanks both very much for your welcoming. I will for sure participate very soon.

I am glad the recent news of GBP Brexit, EU talks, and FOMC are over. Now we can look for more setups.

Regards
  • #2,115
  • Oct 23, 2018 9:21am Oct 23, 2018 9:21am
EUR 1h
I am watching this closely
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #2,116
  • Edited 7:08pm Oct 23, 2018 5:24pm | Edited 7:08pm
AUDCHF

If not for the current market news that passed and that will come this week, I would have gone long. Too many FOMC, EU, etc.. I am not really comfortable with trading yet, but I thought go sharing this to show the way I analyze.

Weekly: notice where the reversal happened at the arrow. It occurred at the touch of the lower boundary of the channel rather than the support zone I drew.
If it was only the support area, it would not have been convincing enough for me. Actually the support lines would have been drawn after the reversal/correction has started.

On daily: we are in an upward move as we may continue to retest the weekly/daily upper trend line or we break South the current daily trend line and resume the overall bearishness.

On H4: there is a nice touch of the H4 trend line and a good looking PA structure on H1 and M15.

So ideally in normal market condition, I would have entered at the vertical lines.

And even so, I would describe this trade as 'counter the trend' setup considering the overall HTF downward channel.

With the targets, I would be flexible depending on how the market evolves.

-------

Generally speaking, my approach is to enter as early as possible on a HTF pivotal level by checking some structure on LTFs (Patterns, candles, minor S/R/TLs, etc.. and divergence if possible for confirmation)
In this example: the formation was an incomplete inverse Head and Shoulders which for me is not ideal because I am bit far from the immediate rejection of the TL. I prefer another pattern that is closer. I am sure there will be more examples to follow.

The reason for highlighting the red arrow showing the reversal is to show the importance of channels. If the trader spots it on weekly/daily, he/she would be entering before anyone else. The reason is that in many cases, there are no clear S/R areas to justify the anticipated reversal/correction. Even if it reverses two/three candles on weekly/daily, there will be many pips for a H1/H4 entry.
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  • #2,117
  • Oct 23, 2018 5:37pm Oct 23, 2018 5:37pm
Applying pitchfork on Weekly/Daily
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  • #2,118
  • Oct 24, 2018 8:17am Oct 24, 2018 8:17am
Quoting eaglestar
EUR 1h I am watching this closely {image}
EUR 1h follow up
Continued to find frequency as resistance and dropped
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #2,119
  • Oct 24, 2018 9:24pm Oct 24, 2018 9:24pm
Quoting eaglestar
{quote} EUR 1h follow up Continued to find frequency as resistance and dropped {image} {image} {image} {image}

Hello eaglestar

On daily/H4, I believe there might be some reaction to the lower boundary of the falling wedge.

Pitchfork wise, any clue for such a reversal/correction if it to happen? If you were to anticipate a correction, how would you draw your pitchfork with this bias? The reason for my question is that I want to add a tool or two to refine my entry on LTF. If daily is my HTF, I will be looking for M30/H1.

There are some EU interest rate news today so I am just watching.

BTW, what do you see on HTF. I have noticed you mostly post H1 charts if Iam not mistaken.

Thanks
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  • #2,120
  • Oct 24, 2018 9:40pm Oct 24, 2018 9:40pm
something like this H1 chart may be?

One of the things I like about Pitchfork is the ability to have a trend line before the second touch. It helps with the retest in case breakouts or for targets, etc..
The only thing that I would like some insights on has to do with subjectivity of using pitchfork. How do you deal with such subjectivity?
Is it more or less the trader's common sense or something else?
Thanks
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