Wednesday, 26 February 2014

Equity Markets continued.. DAX, ES, YM, RT,NQ etc... Ladies and Gentlemen, Please take your shorts now!

Subtle changes afoot after yesterdays inside bar..... For the first time in ages the recent moves have failed to produce a touch on the centre line of what i call " local" pitchforks. ie the most recent low and previously pertinent pivots in low-ish time frames here in the 15 or 30 min chart seen below. This may not sound much but this has been almost unheard of in recent weeks as we have motored higher with eye watering energy.
Now there is always a relationship between all the previous lows and i find i can gauge sentiment well by observing the different relationships between the different choices that can be made for P0. You can change the angle of the PF as you work your way up the "handle" of the fork and choose different lows and observe centre line behaviour. Two pivots are most important. The classic Andrews lowest low and the most recent low behind the  P1-P2 (or BtoC) move ( this gives you the best reaction line to observe). In a vibrant trending market all possibilities are covered and the centre line is always pierced but see below...

 Heres what i mean   FAIL
Just in the centre line but a whisker off a fail

All eyes on the opening session and another post after the first hours trading but just to offset any bearish sentiment check out the Spoo's and this pitchfork plus its reaction line.... No hint of a planned visit to the centre line of this PF BUT the setup is the trade off the inside bar (break below candle body) or off the b-line to sell the first retracment of a confirmed move lower using the  2 x +B-line template overlaid onto reaction+ ML structure ie combo setups.

Yet look at this most interesting PF in the DAX

Please not the GAP at the centre line in the 240 min chart at 9300

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