If you get your pivots right on the corrective swing fork(see this post) you end up with a powerful tool in the form of a grid of warning and reaction lines that price moves through like a ball through a pinball machine; bouncing off these lines both as support and resistance. Here's a great example in the 1min TF but you can produce a range of charts in many TF's which if then combined and overlayed on a single chart will give you a rare insight to price action and potential reversal points....it is true that no one knows if price will stop at a certain line but i have found if price is trending it more than likely will react and retrace on the first approach to the line then continue through on the second or third attempt.
Wednesday, 6 October 2010
Reaction Line Web on EURGBP
If you get your pivots right on the corrective swing fork(see this post) you end up with a powerful tool in the form of a grid of warning and reaction lines that price moves through like a ball through a pinball machine; bouncing off these lines both as support and resistance. Here's a great example in the 1min TF but you can produce a range of charts in many TF's which if then combined and overlayed on a single chart will give you a rare insight to price action and potential reversal points....it is true that no one knows if price will stop at a certain line but i have found if price is trending it more than likely will react and retrace on the first approach to the line then continue through on the second or third attempt.
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