:: actio-et-reactio ::
amg's market charts and blather
What is an "Andrews Pitchfork"? Looks like a bunch of arbitrary lines! Useless!
Sure, I can point you to the A-B-C of how to draw one and even to create one. But of all the many technical methods, this one seems to baffle the casual viewer more than most "traditional" methods. Perhaps the biggest reason is that very little is written about the method and what is out there often over-complicates it.
Calling these lines "pitchforks" doesn't help. They are also known as a "bisect" and "median line", which to me are more suggestive of what is going on.
"Forks" are simply trendlines drawn using significant price points (pivots). What makes them useful is that they embody the funadmental Dow concept of balance, later expanded upon and popularized by many many market gurus including Elliott, Gann, and others. Using a physical analogy, there is an action followed by a reaction. The middle line, the "median line" literally bisects (cuts in half) price reactions as they relate to the originating pivot, the "action". Price is either above or below that balance as it moves out in time. Now that is quite simple.
The more one uses this method, keeping in mind the simple premise, the less baffling they become. Choosing the pivots also focusses attention and suggests potential changes as they happen. Everyone wants a number, a date, a simple answer. While bisects can do that, they also remind you that the market is always in a state of flux, moving from extemes and only briefly in balance.
Today's aggressive move off the lows has some characteristics of a genuinely bullish pullback rather than the start of a more severe correction. Nevertheless, there are enough weaknesses (still overbot, low volume, overhead resistance) to suggest keeping a tight reign on longs.
The working vacation, ha!
Question du jour is "Pullback or Correction?"
As well as being quite overbot on a daily basis, price on the major indices is within some rather timid (small) bullish bisects. And being on the cusp of the Median Line and reversing, the likelihood of reaching the upper fork line is diminished.
There is great anxiety to keep the market bouyant. Also, in concert with the slo-mo slide, the best I can see for bull or bear is more chop until the greater forces are better prepared for the next assault. For amg, the next significant move is still biased towards a major correction based on monthly bearish MAs. As always, please use the link on the right to view the latest charts at stockcharts.com.
Good Luck and Good Trading!
Some comments about this chart:
|
moon phases |
At last, over the rim
of the waiting earth
the moon lifted with
slow majesty
till it swung clear of the horizon and rode off,
free of moorings
- Kenneth Grahame,
The Wind in the Willows
blather: nonsensical talk.
At times my analysis log, at times sharing what I've learned. Always my own work and views.
Content: amg
Basis: glish & bluerobot
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