Pitchforks and fibos nail GBP/JPY missile launch news movement
Chart showing how GBPJPY price move from last week, which was caused by the news, was captured perfectly by not one, but two existing forks. Both of which price had left at previous points, but come back into. One of those forks is three weeks old.
When price reacted to the news, it bounced perfectly off B, which is the lower parallel of the second fork, AND the 61.8 fibonel from the long running fork. Note the very long wick to get to this point, and incredibly strong rejection off this point.
Price eventually reached a high at E 636 pips later, but not before it bounced off C, which is the 2.146 fib retracement of the A to B move. Also, note how the eventual high is a 2.0 extension off the B - C move.
And last, but not least, note point D. Price comes back into the fork, and bounces EXACTLY off the median. This was a potential second entry, with the high 490 pips from this.
When price reacted to the news, it bounced perfectly off B, which is the lower parallel of the second fork, AND the 61.8 fibonel from the long running fork. Note the very long wick to get to this point, and incredibly strong rejection off this point.
Price eventually reached a high at E 636 pips later, but not before it bounced off C, which is the 2.146 fib retracement of the A to B move. Also, note how the eventual high is a 2.0 extension off the B - C move.
And last, but not least, note point D. Price comes back into the fork, and bounces EXACTLY off the median. This was a potential second entry, with the high 490 pips from this.
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