Timing is key
Short

GU 120 When prices meet the intersecting lines.

FX:GBPUSD   British Pound/U.S. Dollar
443 14 7
Today's chart on the GU shows prices have left a Gap to the Upper MLH giving me the first sign of weakness. Also I have 2 consecutive fork ML's pointing down ( not shown here to avoid clutter ) telling me the down trend is firm.

Based on the bearish bias, we should get a trip down to the Median Line ( Dotted white line ). As long as the Upper MLH is not broken convincingly the downward target should hold. The trip to this target will ultimately respect the Warning Lines, especially the intersecting points where we have the highest probabilities for CIT. You will notice the last move was respecting the Warning Line, broke through and pulled back into the intersecting point for an excellent shorting opportunity to where? The next line it meets of course. I have placed purple and green dots at the intersecting points to illustrate what happens if prices reach them.

Sincerely,

TIK
how about if it reaches green? From green to another green?
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Hello GohSam,

Everyone would love this market to follow the purple dots, it does happen, however it is more likely to follow( Crawl ) the lines until it decides to drop to the next line ( Sometimes it drops 2 lines in one move ) the Dots create a Grid of intersecting " Warning Lines " letting me be aware that if price meets them ( from above a buy TP to close a short or initiate couter-trend long ) or ( a break of the line then a pullback into the intersecting point to Sell or a straight sell at the point ) it has a higher probability to reverse direction temporarily thus creating trading opportunities. If you notice the last dropped just past the purple Dot however pulled up nicely on the line and is now following ( Crawling ) it. Also notice the last two drops where preceded by this "Crawling The Line" Phenomenon. The last one Turning on the intersecting point from below. The ultimate path of price on the way to the ML is "crystal ball" stuff, ( Could go 1 green dot across then 2 green dots down etc. it does not matter, what matters is what the market does before,at and after these points, We can use this tool to take advantage of good areas to trade.

Sincerely TIK
+1 Reply
Sam0101 Timing is key
Thanks key. Good structure
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Sam0101 Sam0101
It seems that moving higher to 1.626. How about if it breaks the crawling line?
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Sam0101 Sam0101
Hi Key, i want to ask the maximum it can goes up is around 1.627 - 1.628 below the grey line? How about if it breaks upper the grey line situated in between the purple line?
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It can break the upper grey line, I determine direction by the closes in this situation, If it closes above the grey line, the next obvious upper angle is the WHITE Line or MLH....This is an important line as it is a MAJOR Pitchfork Upper parallel if it breaks decisively above that it indicates what could be a price failure to reach the ML in which case the Major Trend may have changed temporarily at least until 165000. If it Reverses at the White Line or even better Reverses and Leaves a GAP ( Like previous Drop ) This is a powerful Clue that expect a BIG Drop to the ML......Hope this makes sense to you

Sincerely,

TIK
Reply
Sometimes it will break the line temporarily but still close above, I usually wait for a close below the line to constitute a break. I then watch for it to pull back up to the line ( or within a few pips of it ) to possibly take a short. I prefer to watch, close to the intersection points for this to occur as it becomes a safer proposition when price hits the intersection and then falls to the next line.....sometimes further.
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Timing is key Timing is key
So you dont have to keep watching all the time, I watch an hour or 2 before the Dots for a possible entry
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Sam0101 Timing is key
Do you think the situation now is like what you said? A big drop when it reached the white line? It seems so
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a DROP is likely soon, prefer it to drop before the grey/white line come back into the intersection ( Green Dot ) or white line allowing to take a short with lower risk.....Notice how price is crawling along the line:) Ultimately the market will decide it's fate however if you know what to look for you can jump on for the ride:) Lets see how this unfolds.
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Timing is key Timing is key
Upper Parallel Hit (White line Hit) low risk short as predicted. See how it crawled the line, popped it's head into the white line.....Reversed at the Green Dot, pretty cool, heading to the next line, lets see how this unfolds.

Sincerely,

TIK
Reply
Zeheart Timing is key
Nice chart.. the Price action pin bar once again show rejection to the upper Pitchfork line. There have been multiple rejection towards the upper pitchfork line, chances of down move seems to be pretty strong...
Reply
Yes, news based 15 minute PIN again rejected the Upper MLH ( median line parallel ), If you count the swings on the 15 minute chart it was a P5:) Also a nice mini Head & shoulders. As long as the Large & Small Upper Parallels are not broken ( Closes above and beyond them ) the downward ML has a good chance. The only issue is that price action is in the upper 1/3 block of the Big Fork, Needs to get into the 2/3 block soon otherwise we may have a price failure to the upside. In the meantime I will watching the next green dot for a breakout. Check out the chart below
snapshot
+1 Reply
To the Median Line We GO!!
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