Median Lines and Finding the Right Path When it comes to learning about markets and trading, finding the right path and committing to it is the hardest part. The right path has little to do with any technical analysis method. It has to do with structuring our mental framework so that we fundamentally change how we experience markets, trading, and loss.
In the video, I show some Median Line and Action/Reaction work but this work is useless by itself. No tool is good or bad, they are just tools we use to comprehend markets. The problem arises when the tools start using us and we think there is some kind of magic to them.
The essence of our strategy should be to structure our methods and mindset towards functionality. The journey we should commit to is one marked by fostering accountability and responsibility in all our actions. The swing trade Idea I show, takes method and structures it into function.
Shane
Actionreaction
TLT At The Warning Line SupportTLT is currently at the Warning-Line of the white Fork.
We can see how price reacts to the Center-Line.
A classical retest that played out textbook like.
Then the same at the BASE Line of the Action/Reaction Set.
If TLT cracks the WL, then the next stop would be the Reaction line.
All this is in line with the destroyed Bond Market.
And that's the reason why I would short TLT on a rebound.
Peace4Theworld
ES - S&P Example Of Multiple Reactions Off Of A ActionSo, here comes a little lessen, that could have a huge impact on your Trading.
Many of you know that in my arsenal of tools I use the Medianline/Pitchfork tool very often. It's my best tool to project the path of price, find extremes and centers in the markets.
One day, I was stepping back in the world of Action/Reaction and started to research on the wisdom of Dr. Allan Andrews and Babson. I modified their Action/Reaction model in a new way.
Here's what I have found so far:
1. Identify the correct "last" Pivot (Anker 1).
2. Identify the last Low (Anker 3).
3. Wait, until Anker Pivot 1 is broken, and the market did a pullback (Anker Pivot 2).
If you're at point 3., this means that price already shoot up again above the Anker Pivot 1, and preferable even higher as the last Pivot above Anker Pivot 1.
From now on, you can observe, how price is behaving at the Reaction lines (Yellow R's).
How to trade it, use it?
Well, that's upon yourself.
Or, you may wait for a course I'm maybe planning.
But I highly recommend you study it and make your hands dirty §8-)
Happy Trading
SPX retraced 50% of the post-Corona Bull in 50% of the time- BTDTLDR: THE SPX HAS JUST RETRACED 50% OF THE UPMOVE IN PRICE SINCE MARCH 2020 IN 50% OF THE TIME; THIS PROBABLY WASN'T A BEAR MARKET, BUT A TECHNICAL CORRECTION
The 50% Rule of W.D.Gann states that an asset will usually retrace 50% of its range in 50% of the amount of time that it took to establish the range.
Doctor Alan Andrews described the Action-Reaction system of technical analysis which also aligns with Gann's above theory
As far as i can tell, apart from the Doomer WWIII-Weimar2.0 Narrative , the best arguments as to why the bottom is not in are as follows:
1. Bear Markets last longer than 10 months
2. The Vix needs a bigger spike, >40
3. Fed 'printing'
History rhymes: hence in the first grey box...We see that in 2016-2018 there was a bullish phase (1-2) following which the market retraced 50% (2-3) over around six months and there was no capitulation spike in the vix; there was no QE going on in this period.
Since the corona pandemic, we have had a bullish phase (A-B) and now a 50% retrace of that move (B-C) for over 9 months.
I believe this has been a 50% technical retrace of the parabolic upmove between pivots A and B. I do not believe we are in a Bear Market.
The 2016/18 bull move in spx was circa 60% in 3 years
The post corona bull move in spx was circa 150% in just over 18 months
A retrace of 50% in circa 6 months for the 16/18 move is comparable to this 2022 retrace over circa 9 months. Because this parabolic move up since the Corona drop was so brutal- it needed longer to retrace the move.
BUT MOREOVER SPX HAS JUST DONE THE PERFECT 50% PRICE AND TIME RETRACE
Yes the economy is challenged by the growth versus inflation paradigm... Some things never change... The market is not the economy and the market is forward looking... Yes i do believe great system change is inevitable, but i believe it is fiat currencies rather than equities that will bear the biggest brunt of this- pun intended.
GRI 2022
***NO ADVICE 'EVERGIVEN'*** (you can't Suez me ;-)
Knowing the why, is knowing the what.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.
Happy trading
SP500 - Why I see a bounce longA 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.
But from The BLUE swings, we can fairly expect a bounce, because we are at major support.
I expect support from the A/R lines and the red Centerline where price currently fluctuates around.
The green sliding-parallel is just a measure of overshoot in the angle of the A/R's.
So, if price can fight it's way back above the red Centerline by a open and close, then this could be a good long signal.
You may ask, why it didn't worked the last time?
If you are familiar with the Medianline rules, then you know, that after a breakthrough, we can expect a bounce back to it.
And that's exactly what happened. A bounce back to the Centerline.
A SHORT SCENARIO
Counter to the long idea stands the short idea, which could play out when we close below the red Centerline again. That would be very ugly and we had to expect price landing down at the red L-MLH or at least at the white Centerline (see the left weekly chart).
However we play this, we have to play it with maximum controlled risk and follow our trade plan.
Otherwise the market will rip off our face.
Trade save
The End Is NighSpX Fell Out Of A Rising Wedge
And is backtesting longterm resistance
This is also at a geometric action-reaction line
There is bearish divergence
I wouldn't want to be long here
But markets are designed to stay irrational longer than retail can stay solvent...
DISCLAIMER
For information only
No advice
Trade safe
SHORT BITCOIN BTC/USD TRADE IDEAPrice has Broken the Diagonal Low and will look to Retest the Back side of it filling the Gap before moving lower
Principle is Price Moves in a Flow over Time
The Flow Has turned down from its consolidation upward and will expand to the Downside
Principle is For Every Action there is an Equal and Opposite Reaction (Newton)
BTC 3D time frame market map. Key points:
- Price has test and retest the lower parallel line (Price typically runs out of energy at the reaction line)
- Price is in a range and needs to decide direction before we can make our trade decision.
- Price is above the 200 moving average for over 60 days.
- Overall on balance of probability, price should go higher from this point but we cannot place any trade as it is in a range and has a 50/50 chance of going either direction.
When we follow our plan we eliminate impulse trading so make sure you design a method to have a peace of mind.
Good luck.
The Emperor Has No ClothesPay no attention to the giant head and shoulders on the weekly
thepatternsite.com
Even if you do that, let geometry show you where price is heading
The action reaction technique devised by Dr Alan Andrews uses Newton's Third Law to derive a median line, which price action will return to 80% of the time (Greg Fisher later validated this).
With the variants of the Andrews fork available on tradingview we have 4 median lines to aim for
I have started with an Andrews fork and will cycle through the others
The emperor has no clothes
GRI 2022