Timing is key
Short

ACTION / REACTION THEORY APPLIED TO EURUSD ( M )

FX:EURUSD   Euro Fx/U.S. Dollar
2327 32 44
IDEA: THE USE OF THE 0-3 LINE TO DETERMINE NOT ONLY PREDICTIVE TURNING POINTS, BUT ALSO, THE SLOPE OF THE NEXT MOVE!!

This chart may seem confusing at first glance, however I will explain how to interpret it the best I can.

First , Each parallel pairing is color coded with 1 Center Line (C/L), 1 Action Line (A/L) & 1 Reaction Line (R/L) and are equidistant to the Center Line.

Second , Each Center Line ( C/L) MUST pass through a 0-3 Pivot Point ONLY.

Third, Each Action Line (A/L) must pass through a Low Pivot & a High Pivot , This ensures that the Reaction Line has a high probability of being "TUNED IN"

Observation 1: Focus on Predictive Turn 1: As the market Rolled Over it followed The Predictive SLOPE, the RED downward parallel #3( RL             ). At this point you would have drawn in your BLUE #1 (0-3) C/L, #1 (A/L) & most important the #1 (R/L): The Intersection with #3(R/L) would not only given you the TURN 2 but also the Predictive SLOPE ( In Blue) of the next move.

Observation 2. We are now at the intersection of the Upward Blue Line ( #1 R/L ) which is also the #5 (0-3) Center Line and the Green Downward Parallel #2(R/L) and the market is just rolling over!.

Observation 3. Notice where the Green Downward Line Intersects the Upward Purple Parallel #5(R/L), Here I am firstly predicting the Downward SLOPE, Second: Predictive Turn 4 at the intersecting lines ( Green & Purple) and Third Upward SLOPE ( Purple) of next move to predictive turn 5:).....Notice how it's also hitting the UMLH parallel of the pitchfork!

Observation 4. The Blue Downward Facing Pitchfork Median Line ALSO intersects Predictive Turn 4 PRECISELY.

I hope this has been educational.

TIK
Where can we read more about this 0-3 line?

Kind regards
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Great idea!
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Timing is key HamzaLeith
Thanks Hamza,

Just breathing new life into an OLD Idea....The good news is there more where that came from:)
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Hello,

The 0-3 line is quite unique in that it can forcast not only turning points but the slope of the next move. It takes a little trial & error however the key is to find a good Action Line that catches the Top & Bottom Pivot. Full credit must go to the late Dr Allan Andrews for this and many discoveries that remain in his original Action/ Reaction Course. It can be found here at http://trading-naked.com/alan_andrews_course.htm

I have studied his course extensively however it was written before computerised charts so & Microsoft Word so it can be hard to read & view. This particular idea is on two pages one with text the other with a chart example. After the 20th read the penny dropped for me:)

Thanks
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HamzaLeith Timing is key
Great stuff Timing is key!, thank you for sharing the source with us, I am definitely going to study it!!
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Timing is key HamzaLeith
Glad you all enjoyed it, I am working on Part 2 of this fascinating Set of Lines on a shorter time frame....Stay tuned

TIK
+1 Reply
Very interesting - thanks sir!
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Great stuff
A/R Course of Dr. Andrews here http://www.medianline.com/journal/category/action-reaction-course
+2 Reply
Following the line nicely:)
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apollo12 Timing is key
great stuff ,just have a look on my chart and tell me am i in the right direction or not .
snapshot

thanks
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Hello,

Yes, practice finding a Centreline, then the action point ( High or Low Pivot ) then the reaction parallel. I personally use the Parallel Tool in Tradingview, once I line up the action point with the centreline I just clone it & move it forward until it lines up with the centreline & Wala! Forks are cumbersome to use for action/reaction lines. I would begin with a thorough understanding of the Andrews pitchfork before moving onto Action/Reaction as once you get a grasp of this tool, Action/ Reaction is the next step.

Thanks for your chart, your on the right track.

PS. There are some useful links in this thread where you can get a grounding in this method

Sincerely,

TIK
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apollo12 Timing is key
ur comment sir,
snapshot
.
thanks
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Hello all, tracking the downward green reaction line beautifully as it's being pulled into the blue median line. That's around 1380 pips in five months! heading towards 1.11000? I'll let the chart speak for itself.
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RobTaylorForex Timing is key
Brilliant! Seems to bounce predictively as well after every big down move. I could be wrong, but after this I see 1.2450 area before we head lower again.
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Timing is key RobTaylorForex
Yes, definitely more downside from a monthly perspective anyway. 1.2450 is a good interim target. Most of my shorter term trades on the USD pairs are short as that is where most of the higher probability trades are sitting, so that is where my focus is, however, if a long presents based on what I see and it conforms to my rule set, I will take it. This chart shows that we are a about 50% into an extended down move, which statistically has an 80% chance of reaching the downward blue median line which if you follow the line has it reaching 1.11000 area in around the middle of 2015! Hope it makes sence. Thanks for your comments, very much appreciated:)
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OLIGARCH Timing is key
Hello. TIK. This is amazing.
Idea published 13 months ago, and now if we look at your predictions and what you have draw down here.. It goes just like you predicted.. This is amazing!
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Thank you, the reaction line caught it nicely, now consolidating this massive sell off
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IvanLabrie PRO Timing is key
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Does this make sense to you?
Been reading the Andrews Action/Reaction course material...interesting stuff for sure.
Not EW labels, but the 0-5/abc pivots from that method.

How would you build on this? Not getting it 100%.
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Timing is key IvanLabrie
Hello Ivan, Yes the Andrews material is real interesting, Andrews and Roger Babson made a Ton of money with it, he even helped the Kennedy's make millions from it, problem is......Much of the Context of how he would determine his 2 or 3 favourite techniques, is lost or hidden in his old newsletters, if you can manage to get a complete set ( Which spanned around 15 years ) let me know:). You are on the right track, he was pretty loose in determining the 0 to 5 pivots, in the above example I would have used the 0 point at your 2 point...even if it was not the lowest point...reason....The big impulsive move begins the new up trend. I noticed you used a 0-4 line which is fine, however, reconfigure your pivot counts and you will notice after P5 the market plummeted. So , because the new 0-1 was so steep, Andrews would have used a Schiff or Mod Schiff using a P0 - P3/P4 to isolate a P5 termination area, have a play and I bet you'll find it:) I am on my IPHONE at the moment so I can't do a chart workup. Nice chart by the way
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Timing is key Timing is key
Sorry above I meant a Schiff/Mod Schiff OR a P0-P3/P4 pitchfork to isolate a P5 termination area
+1 Reply
IvanLabrie PRO Timing is key
Thanks for the quick reply!
I only looked at the material found at trading-naked.com, they have a host of Tim Morge/Andrews info there.

I had a hard time following your trendline origins/modified channels and whatnot, now it's a bit more clear.
Really great stuff, it clearly pays off.
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Timing is key IvanLabrie
I will always find the P5 with one of the lines, the problem is doing it in realtime after P4, I am almost positive Andrews had that nailed after the P4 came in.....The market always leaves clues, Tou just have to get good at finding them;) I will see if I can do a workup when I get back home. great talking to you Ivan,
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IvanLabrie PRO Timing is key
Thanks!
Yeah, we can use a host of techniques to find this key pivotal zones. I like the timing of the trendlines and forks, manages to capture the expanding and contracting of growth cycles well. I do it with other techniques, but always had respect for this method since I've seen it in action multiple times in your charts and the material I've read.
Good night!
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Timing is key IvanLabrie
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IvanLabrie PRO Timing is key
Great.
So, we got our action/reaction lines.
The straight drop, where's the ABC? How do you take it from there?
Really interesting. Just add more paralells?
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moorekapital Timing is key
I'm not sure if i understand this English,...... "When P4 was confirmed I would have been confident that I was on to the right fork" Kindly help me. Thanks
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IvanLabrie PRO moorekapital
Pitchfork terminology, read the material over at trading-naked.com. Made it a bit more clear for me.

Each p0-5 is a series of pivots/fractal low/highs. Market decision points.
Interesting how they seem to line up nicely despite not following the EW rules. R,N, Elliott was contemporary to Alan Andrews, which makes it more interesting in my opinion. People nowadays see Elliott Wave as a fact or a given.
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Timing is key moorekapital
Ivan/Moorekapital,
@Ivan: I think I have answered your 1st question on this new chart, sorry for the confusion. Your 2nd question: Andrews actually new a fellow called Mr Clyde Morse, A Former co-worker with Elliot, and incidentally the grandson of Morse of Telegraph fame ( Morse Code!) pretty interesting don't you think. Andrews was well aware that the market moved in 5 fluctuations ( Hense the 5Ps) followed by an ABC countermove.......So moving on.....As you can see andrews did not have rules regarding the specific construction of the waves he just acknowledged there where 5 followed by an ABC. What he did observe is that after a 0-4 line was crossed you would see an ABC, After the C he would begin the count again P0 - P5 either continuing with the previous trend or the start of a change in trend.... ( See the green dotted 0-4 lines on the chart ).......The only issue I have with Elliot wave is that if you put 5 Elloticians in a room I bet would get a variety of different interpretations on the counts..This makes it difficult to know where you are at in the cycle....

@Moorekapital: I would confirm a P4 when a the swing top between P3 & P4 was broken...I would then be on the lookout for a P5 termination. I have answered the " right fork part of your question in my answer to Ivan's question

Thankyou all for your comments

snapshot
+1 Reply
Super nice chart and great explanation!

It's impressive how price reacts at the A/R lines.

Great work!
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Hello, TIK.
Wonderful how you nailed it with Predictive turn 4. You made this Idea 2 years ago, and look how it bounced here.
So based on your idea, we should no get back up , hehe!
Maximum Respect!
+1 Reply
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