I just don't seem able to get through to you all about this. So here is most of my argument minus the entry short entry (which if you havent done already should be made in the next three trading days of 23 Jan , 24 Jan and perhaps Monday 27th January.If you prefer you can wait for the second attempt or rounding top that will surely follow. I don't know whats changed but it has plus there has and a fierce battle between Bull n Bear has been highly visible all this week.
Firstly if you are not conversant with Andrews Median Line Theory here is the case simply put.
1. We have reached the target ( centre lines) of two historical Andrews pitchforks. The target/objective is finally reached and there is no where else to go but down. Not only are these two Andrews pitchforks massive but they contain all the data that is possible since the DAX futures contracts inception ( 23 Nov 1990) and this point ( low) is used as the P0 anchor for the giant PF.
This one contains the reaction line that price appears to have passed straight through. But look back at how price often passes through and then stalls before falling.
Not only this important fact of the two centre lines being pierced but if you look at price behaviour you will see that each successive move up has had a successively shallower retracement until we have seen an almost hysterical price pattern that must climax.
Now we use my proprietary line location technique. Simply put our data representation system ( here using Jap candles and Time Vs Price on X & Y axis) is missing a dimension. Perhaps we need to look at 3 D data systems such as Nanex JTools price sequencer because after sitting infront of a screen both as a professional and now a private trader probably for longer than some of you have been alive I can see that our reaction lines and indeed all linear studies applied to charts have another dimension to them and are infact more like vibrating energy fields which curve and as such can have more than one location in different time frames. If you want more information you should contact me.
Anyway as i showed this image on both sites ( medianlinetrader.blogspot.com and Commodity-analysis.co.uk). Here is the DAX with the full 100% reaction line from the historical PF's shown above. Also look at behaviour at reaction lines. These fall into recognised and repeated Median/Reaction line combo patterns that I have identified over the years and use for entries in conjunction with the slimmed down B-Line and 2X template:
reaction line in red and dotted red ( same line different TF location plus the Centre lines are shown and offer us real insight into the trading zone ie supp/res)
UPDATES TO COME and links in previous post plus the ES
Friday 24th Jan 2014
Don't expect the tape to snap back. First objective reached for ES and DAX but we need a move below 1800 to 1792 or DAX 9370 but perhaps a bounce first but downside momentum should build. YM also shown below. NB: These are local forks and the move will be far greater but these CL objectives should once reached show a bounce and further upside before correction/move lower resumes