Coming back for a third time to the red CL? The point is that once you can prove beyond reasonable doubt the axis around which price is moving ( in this case of EurUsd the green horizontal CL from the monthly fork) then you have a clearer idea of price action and directional movement as it unfolds. In this case continued failure to break higher will reinforce my view that EuroUsd is building a top here ( have a look at the daily chart)- add to this the repeated pattern which i have seen many times before such as in 2009 in UsdChf and also add into this mix the fundamentals that have not gone away but are merely festering.
For those that have never seen multiple PF's and reaction line charts.........Dr Mircea Dologa writes in his advanced book (Vol2)
" We would argue passionately that multiple Pitch Fork patterns greatly enhance the potential trading result"........ and also says "The chart might seem unbearably messy but this method is indispensable for understanding the market flow".
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