Saturday, September 10, 2011

Weekend Thoughts - Andrews Pitchfork [9/11/11 2:08 PM Update]

[9/11/11 2:08 PM Update]


1200 resistance?

[12:58 PM Update]


Bingo.

 Andrews Pitchfork

I thought I'd play around with this study over the weekend.

Andrews determined there was a high probability that price would return to a median line. For a brief description of this study and how that median line is derived, see Investopedia's definition.



There is a high probability that price may be drawn to the median line (yellow) based on this study.

However...


Should price find support at the bottom of the 8/9 - 8/22 channel and 38.2% Fib and reverse from here, this would be considered a price failure (Failure to tag the median line).

Should this be a legit price failure and an end to this trend (this current pullback from 9/8-9/9)...


Then this would be the new pitchfork to follow. The median line here would be the one to watch.


Not sure if intersecting pitchforks may be used but will be interesting to see if price responds to any of the intersections.
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