Sometimes it's too obvious to call it a coincidence.
And as you can see, knowing how to use a tool can help to make intelligent decisions in trading.
The short time-frame:
The Pendulum Swing:
What if the trade fails? What if this fractal...
After the P5 Low, we have a super nice count to the upside. Now we may have to face that the little party is over.
Potential P5 is in and if it's true, we go down at least the the U-MLH.
An opposite view is, that price will advance to the upside even more. If that's the case the potential to reach the second Warning-Line WL2 is baked in.
The Stochastics faster...
Last days where pretty crazy again.
So let's dig in to the daily TF and see what the chart reviles us.
We had the move down to P 5/0.
From where we expect a new 0-5 wave up.
Since price trades lower than P1, we can say that this guy is confirmed.
From P1 price moves down, and up again.
This is just another wave count in a lower TF, because we would need to see...
CL reached the extremes short term.
From here I expect a bounce up, with a potential to the yellow CL (Center Line).
The idea is supported by the Stochastic, where the faster is overbought and the longterm is sloping up.
Risking small, aiming big, that's what I do in CL.
In contrarian I take profits quickly if it's not playing out like I want.
Silver comes right back to where it broke out in 2010.
The 0 to 5 count could be complete, exactly where the Lower Medianline (L-MLH). is catching price.
Now we don't just jump the gun.
We wait for a signal, a change in behavior.
Put your observation hat on.
In this short video, I show you what I expect from what I do, using Action/Reaction.
It's on purpose, that I don't give any further explanation - just stay curious, try to figure it out, learn, prove, and earn with what you come up with from the study.
It's only you that can make it possible.
Allen Andrews gave us great rules.
The P5 rule is one of them.
As we see in the chart, P5 could be reached.
What does this mean?
It's an indication that price is at it's peak and a potential turn is ahead.
Furthermore we have reached the center-line, where
a) price will beak through, revisit and continues
b) price will turn and trade to the opposite...
The current target is still the center line of the pitchfork.
From there we have a high probability to get at least a bounce.
I would not expect a trend change, since BTC is clearly following the bear market. And why wouldn't it?
BTC is a currency. People use it as a thing of barter the same way as with Fiat-Money.
What ever you use to buy, it's value comes...
If you followed the projections of the S&P 500, you where able see live, day by day, how the pitchfork/medianline tools and framework is applied to the markets. And more important, how we as trader can rely on these tools and rules.
In the chart you see that the market swung up to create P4.
It's really picture perfect so far.
Now we approach P5. But know that...
After the 114 level seems to be nailed, higher targets are on the plate.
There is not much to say here.
Price just roars further north.
The A/R and Pitchforks project the highly potential price targets.
Read again: "project", not predict ;-)
Trade small, trade save.
Big shout out to the TradingView.com team!
On May 4th I asked them, if one day, they could implement the Font Size into the Fib Tool, since my eyes are not the strongest anymore. And on my huge Monitor, the numbers where tiny.
And just now I got a friendly message from their awesome support, it's done.
I do not take such an effort for granted!
So, once more, a...
A LONG SCENARIO
We see the RED numbers. They show the Pendulum Swings.
Then we see the BLUE numbers, showing the minor Pivot Swings.
For both I apply the 0 - 5 rule. This means, if 5 is reached, a turn is highly potential.
The problem here is, that you don't know then the 5 is over.
From the RED perspective, the market has not jet reached it's low.
The #IWM has traded in a wonderful way.
Watch how the #Medianlines , the whole #Pitchfork provided support, resistance and - if you know the rules, how they could be applied to make some $s.
However, we arrived on the P5, which is potentially morphing to P0 for the next move to the upside. Alltough I personally don't believe it because of this market...
"If price reaches "a" ML, it will either gap (trade) through it, or bounce and trades back from where it came."
ML = Medianline. This can be the U-MLH (Upper-Medianline-Parallel) or the L-MLH (Lower-Medianline-Parallel) or the CL Centerline.
Knowing the Framework of the pitchforks holds definitely $alue §8-)
From yesterdays session, they strangled the S&P too high too fast. This will probably lead in a nice short micro crash to the center line.
Do you see the daily chart?
Price is exactly at the center line, and a 50% warning line confluence. Price just follow the rules of the Andrews Medianlines: "If price breaks through any Medianline, it pulls back to it, before...