Thursday, 9 August 2012

ES U12 Energy coil...forks are useless here!

Price has taken to gyrating up and down in a battle to get up and through a set of monthly time frame reaction lines plus the black UMLP you can see here. Forks in this situation do not work and you get multiple failures in both up & down forks so they remain unrelaible re the CL. The upper and lower MLH/MLP's still seem to have effect. There is no doubt price wants to go higher and as of the time of writing has cycled up and down 3 times including yesterdays first effort. This appears as a series of side by side bars in the high time frame. This could continue with false break ups and downs until like a knife through butter it suddenly breaks out...make sure your on the right side of the market when it does! I have ex colleagues who trade these ranges but for me I remain flat. I expect it to go higher tomorrow for a crazy Friday..but I am unsure> the upside is wide open until 1415 but there are many gaps (1360-62 is just one) left on the downside so its not unthinkable for a collapse tomorrow. ( all red lines are reaction lines). If you want to find resistance in any time frame use the FNL fork. (First & Last). It never fails (but is not orthadox andrews). See the example in the top 2 charts and try on any chart. In an upsloping fork use P0 then the first immediate high pivot ( before any retracement) ie the top of wave 1 as p1 then the last significant low.

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