A Gold'en Newtonian Sell-Off Porjected By MedianlinesSir Isaac Newton stated the Third Law of Motion in his landmark work, Philosophiæ Naturalis Principia Mathematica (commonly called the Principia), which was first published in 1687. This law appears in Book I, in the section titled Axioms, or Laws of Motion.
(Axiom: A self-evident truth)
Newton did explicitly present it as an axiom. In fact, it's Axiom III (or Law III) of his three fundamental laws of motion. Here's how he phrased it in the original Latin and in his own English translation:
"To every action there is always opposed an equal reaction: or the mutual actions of two bodies upon each other are always equal, and directed to contrary parts."
And what does this have to do with Medianlines / pitchforks?
This tool measures exactly that: the action — and the potential reaction!
Medianline traders know that pitchforks project the most probable direction that a market will follow. And that direction is based on the previous action, which triggered a reaction and thus initiated the path the market has taken so far.
…a little reciprocal, isn’t it? ;-)
So how does this fit into the chart?
The white pitchfork shows the most probable direction. It also outlines the extreme zones — the upper and lower median lines — and in the middle, the centerline, the equilibrium.
We see an “undershoot,” meaning a slightly exaggerated sell-off in relation to the lower extreme (the lower median line). And now, as of today, we’re seeing this overreaction mirrored exactly at the upper median line!
Question:
What happened after the lower “overshoot”?
New Question:
What do you think will happen now, after the market has overshot the upper median line?
100% guaranteed?
Nope!
But the probability is extremely high!
And that’s all we have when it comes to “predicting” in trading — probabilities.
Why? Because we can’t see the future, can we?
Gold?
Short!
Looking forward to constructive comments and input from you all
