The white up-sloping lines are the lines of a LT Pitchfork. The dashed one is the WL1 (Warning-Line 1).
Price was not able to find support above the WL1.
So it's naturally break down and...we see a classic retest from below. Picture perfect rulebook trade!
Then price trades south again and nearly meets the Centerline of the yellow Fork.
The red dashed line is...
The weekly shows a potential P5, which indicates a possible turn of the mid-term trend.
And here's a closer look on the daily I stalk for a bigger move to the upside, based on the weekly:
Also, watch that there's a Sine-Wave.
The center of this Sine-Wave (P2) is often a good target besides the Centerline of the Pitchfork.
Here's how I approach the beanies.
It's a simple concept and it "works" over and over again.
But...what do I mean by "work"?
I mean, that this concept (...go by the numbers on the chart) helps me to understand, and to reveille what's obviously, but hidden from my eyes at the first glance.
It's a simple plan what to analyze step by step...from...
When trading with Pitchforks, you learn a couple of rules you can lean on. For example: if price breaks outside of a Pitchfork (above or below one of it's lines), it has a high tendency to come back. Sometimes once, twice or even multiple times.
This rule is not by accident.
And this rule is applicable even to horizontal lines. It is just what it is. It happens...
This market is only for a view investors, but really not recommended for retail traders with pockets smaller then a couple Millions.
As for the chart analysis on the weekly timeframe, we see that price had blown through the confluence point and through a couple resistance ranges.
The target is the white centerline.
A potential pullback to the prior resistance is...
Not really. Instead it's building pressure!
All the messing around in the sideways area (dark red) is usually managed to "load the boat".
If price breaks out to the upside, there's even a chance that we could forget to find a entry like I have projected with the arrows.
What also pops into my eyes is the slightly exponential curve that's begin to build with the...
Besides many indications I have not drawn in, I see that price is stretched like CL (see link).
Here at the WL (Warning Line) the air is very thin to dive deeper. I think the crew first needs a breather and grab some air.
Therefore I see a high potential for a turn. Even a spurt up to the L-MLH would not surprise me.
TLT's longterm trend is down (see higher TF's).
The daily TF presents a pullback.
If price can break through the tiny (orange) shelf, we have a nice trade on the plate, at least down to the Centerline (my personal TGT1).
Here we have the pullback to the former support, now resistance. It's a classic setup where I look to go short, maybe in the daily TF.
Watch out for shoot through the line...be patient!
Target is the Centerline.
The orange up-sloping Fork is showing, that price is at the WL1, which gives natural support at this stretchy point.
Another indication is, that price is now once more at the U-MLH of the white Fork that acts also as a support level, which we saw with the earlier touches.
The magenta lines are plain Action/Reaction lines, derived from Newtons Law of...
IBM was very stretched at the Warning-Line 1 and is now seeking balance.
So we go from extreme back to balance. It doesn't matter how you call it....Mean-Reversion, Action/Reaction or even manipulation...
What count's is, that we have knowledge and rules at hand, which provide high probability trades in REAL live, not just in demo or on backtests.
Check out my...