Post trade analysis: This was a very interesting trade, although I haven't completed the labeling on this chart ie. missed 4 & 5 pivot, It is a Giant Wedge or Inverted Expanding Pivot Terminating at P5! The bar that stopped me out on the initial trade was P5. Now if you notice I have labeled "1st Price Failure of Larger ML" meaning it failed to reach the median line of the extreme left low pivot - 1 pivot/2 pivot Pitchfork ( only small dotted ML drawn ), The market came down and put in Pivot 3 ( Higher than pivot 1 & equidistant to the 0 Pivot ) but more importantly pivot 3 was also a price failure as soon as it left the upper parallel of the downward purple pitchfork.........I was now on RED ALERT for a powerful move to the upside as this scenario met one of Dr Andrews Rules and I quote: Rule 9. The price failure rule is negated ( 1st failure above ) when the next price trend ( from 2 to 3 ) is also a failure in reaching the median line ( Pivot 3 ). This is ALMOST INVARIABLY A SIGNAL ( A SHAKEOUT ) of a BIG FAST MOVE......:) In the direction indicated by the last space ( ie. The Space from 3 to the downward purple median line telling us of an impending reversal ). I hope that makes sense to all.
Note: It is quite amazing how this rule together with the forks validated the US PPI news well before the news HIT. I wonder who was buying:)