IDEA: THE USE OF THE 0-3 LINE TO DETERMINE NOT ONLY PREDICTIVE TURNING POINTS, BUT ALSO, THE SLOPE OF THE NEXT MOVE!!
This chart may seem confusing at first glance, however I will explain how to interpret it the best I can.
First , Each parallel pairing is color coded with 1 Center Line (C/L), 1 Action Line (A/L) & 1 Reaction Line (R/L) and are equidistant to the Center Line.
Second , Each Center Line ( C/L) MUST pass through a 0-3 Pivot Point ONLY.
Third, Each Action Line (A/L) must pass through a Low Pivot & a High Pivot, This ensures that the Reaction Line has a high probability of being "TUNED IN"
Observation 1: Focus on Predictive Turn 1: As the market Rolled Over it followed The Predictive SLOPE, the RED downward parallel #3(RL). At this point you would have drawn in your BLUE #1 (0-3) C/L, #1 (A/L) & most important the #1 (R/L): The Intersection with #3(R/L) would not only given you the TURN 2 but also the Predictive SLOPE ( In Blue) of the next move.
Observation 2. We are now at the intersection of the Upward Blue Line ( #1 R/L ) which is also the #5 (0-3) Center Line and the Green Downward Parallel #2(R/L) and the market is just rolling over!.
Observation 3. Notice where the Green Downward Line Intersects the Upward Purple Parallel #5(R/L), Here I am firstly predicting the Downward SLOPE, Second: Predictive Turn 4 at the intersecting lines ( Green & Purple) and Third Upward SLOPE ( Purple) of next move to predictive turn 5:).....Notice how it's also hitting the UMLH parallel of the pitchfork!
Observation 4. The Blue Downward Facing Pitchfork Median Line ALSO intersects Predictive Turn 4 PRECISELY.
Hello, TIK.
Wonderful how you nailed it with Predictive turn 4. You made this Idea 2 years ago, and look how it bounced here.
So based on your idea, we should no get back up , hehe!
Maximum Respect!
Timing_is_key
⋅
@MetalCruisers, Notice the timing for Turn 5 was almost spot on .... but who's counting:) Thanks just highlighting the power of Action/Reaction. Cheers
Timing_is_key
⋅
Hello all, tracking the downward green reaction line beautifully as it's being pulled into the blue median line. That's around 1380 pips in five months! heading towards 1.11000? I'll let the chart speak for itself.
RobTaylorForex
⋅
Brilliant! Seems to bounce predictively as well after every big down move. I could be wrong, but after this I see 1.2450 area before we head lower again.
Timing_is_key
⋅
Yes, definitely more downside from a monthly perspective anyway. 1.2450 is a good interim target. Most of my shorter term trades on the USD pairs are short as that is where most of the higher probability trades are sitting, so that is where my focus is, however, if a long presents based on what I see and it conforms to my rule set, I will take it. This chart shows that we are a about 50% into an extended down move, which statistically has an 80% chance of reaching the downward blue median line which if you follow the line has it reaching 1.11000 area in around the middle of 2015! Hope it makes sence. Thanks for your comments, very much appreciated:)
OLIGARCH
⋅
Hello. TIK. This is amazing.
Idea published 13 months ago, and now if we look at your predictions and what you have draw down here.. It goes just like you predicted.. This is amazing!
Timing_is_key
⋅
Thank you, the reaction line caught it nicely, now consolidating this massive sell off
IvanLabrie
⋅
Does this make sense to you?
Been reading the Andrews Action/Reaction course material...interesting stuff for sure.
Not EW labels, but the 0-5/abc pivots from that method.
How would you build on this? Not getting it 100%.
Timing_is_key
⋅
Hello Ivan, Yes the Andrews material is real interesting, Andrews and Roger Babson made a Ton of money with it, he even helped the Kennedy's make millions from it, problem is......Much of the Context of how he would determine his 2 or 3 favourite techniques, is lost or hidden in his old newsletters, if you can manage to get a complete set ( Which spanned around 15 years ) let me know:). You are on the right track, he was pretty loose in determining the 0 to 5 pivots, in the above example I would have used the 0 point at your 2 point...even if it was not the lowest point...reason....The big impulsive move begins the new up trend. I noticed you used a 0-4 line which is fine, however, reconfigure your pivot counts and you will notice after P5 the market plummeted. So , because the new 0-1 was so steep, Andrews would have used a Schiff or Mod Schiff using a P0 - P3/P4 to isolate a P5 termination area, have a play and I bet you'll find it:) I am on my IPHONE at the moment so I can't do a chart workup. Nice chart by the way
A/R Course of Dr. Andrews here medianline.com/journal/category/action-reaction-course