This is a continuation of the linked chart below. In anticipation of a reversal I have 2 forks that tell the story.
1. The yellow fork: If P2 confirms ( Therefore fails to reach ) I can expect strong selling pressure past P1
2. The purple fork: If the above scenario plays out the next logical target is the lower MLH ( Parallel). The market may pull up around the intersection of the purple ML & yellow lower MLH however the dotted arrows is what I am anticipating should P2 confirm.
If the probable P2 is taken out, this scenario is toast!
The power of a PRICE FAILURE ( ie: failing to reach the median line) is beautifully illustrated above. If you hit the PLAY button you will notice that my initial predictions both on the chart and the 2 points above have played out perfectly. I am anticipating the market reaching the (Purple) lower parallel soon.
The market is heading south nicely with a predicted turn at V7 ( Vertical Line 7 ). I always look for vertical, horizontal and/or angular support and in this case 2 are missing. it also against the newly formed bearish trend so I will watch and wait around V8 (Vertical line 8) for an entry.
PS: The market is heading towards both the lower yellow parrallel and the purple ML, now if it zooms through those lines, we have a high probability of it reaching 1.66639 near V10 or V11
Timing Is Key