Action Reaction Theory ( The 0-3 Line) GBPUSD 60
WITH THIS 0-3 LINE IDEA WE ARE NOT ONLY ANTICIPATING THE TURN AT YELLOW P3 BUT THE SLOPE OF THE NEXT MOVE!
This chart is an extension of the 0-3 Line IDEA presented on my linked chart below, the only difference is the shorter time frame. As I am writing this the market has exploded to the upside and I anticipate it will correct and follow the new anticipated slope ( See green upward dotted arrow)
NOTE: ACTION LINE'S & REACTION LINES ARE EQUIDISTANT TO THERE RESPECTIVE CENTER LINES.
NOTE 2: THE SMALLER DOWNWARD SLOPING PARALLELS WERE DRAWN FIRST AFTER THE WHITE P3 BOTTOM CONFIRMED.
NOTE 3: EACH ACTION LINE MUST PASS THROUGH A LOW PIVOT & A HIGH PIVOT.
If you focus your attention on the Yellow P3 & the spike bar that FIRST TOUCHED the Purple Downward Parallel.....& then began to turn. At this point we would draw our NEW Yellow P0-P3 Centre Line, Our yellow Action Line 1 & most importantly our yellow reaction line 1.
Observation 1: As the market plummeted from yellow P3 We anticipated the slope ( Market was falling faster ) and we had an area were the move was likely to end ( The over-run was actually expected due to the speed of the fall in relation to the anticipated slope )
Observation 2. We then experienced a bottoming formation ( We new at this stage the move was over ) before the next move up.
Observation 3. We now have a new anticipated slope ( See upward green arrow )
I hope you have enjoyed this IDEA!
Observation 1The market broke the bottom of that candle and was falling at a FASTER rate than the anticipated slope
This chart is an extension of the 0-3 Line IDEA presented on my linked chart below, the only difference is the shorter time frame. As I am writing this the market has exploded to the upside and I anticipate it will correct and follow the new anticipated slope ( See green upward dotted arrow)
NOTE: ACTION LINE'S & REACTION LINES ARE EQUIDISTANT TO THERE RESPECTIVE CENTER LINES.
NOTE 2: THE SMALLER DOWNWARD SLOPING PARALLELS WERE DRAWN FIRST AFTER THE WHITE P3 BOTTOM CONFIRMED.
NOTE 3: EACH ACTION LINE MUST PASS THROUGH A LOW PIVOT & A HIGH PIVOT.
If you focus your attention on the Yellow P3 & the spike bar that FIRST TOUCHED the Purple Downward Parallel.....& then began to turn. At this point we would draw our NEW Yellow P0-P3 Centre Line, Our yellow Action Line 1 & most importantly our yellow reaction line 1.
Observation 1: As the market plummeted from yellow P3 We anticipated the slope ( Market was falling faster ) and we had an area were the move was likely to end ( The over-run was actually expected due to the speed of the fall in relation to the anticipated slope )
Observation 2. We then experienced a bottoming formation ( We new at this stage the move was over ) before the next move up.
Observation 3. We now have a new anticipated slope ( See upward green arrow )
I hope you have enjoyed this IDEA!
Observation 1The market broke the bottom of that candle and was falling at a FASTER rate than the anticipated slope
