Wednesday, 15 July 2015

Sugar(V15) and Oil (CL Q15) continued

Sugar continues to stabilise after touching the LMLP at the 11.33 area although we have seen price penetrate lower below the line. It may well retouch the green line before it can be ascertained if we have seen a new low pivot formed, However this does not affect our short term swing trade.


This chart below shows two pitchforks. The classic Andrews Pitch Fork: A-B-C and my proprietary FNL (First n' Last or FNL ) pitch fork:1-2-3. The relationship between the first pivot formed (2) after a new low pivot but before any retracement ( ie the impulse wave) and then using 1 & 3 always shows remarkable frequency with price and will give you the very first objective of any trend/countertrend. I have ticked in red successive pivots as my empirical study shows that they all have a profound influence on future price both in terms of ML's and RL's. With justABC and 123 drawn you can see the reaction lines and their effect on price. Please note the effect of the angle of any reaction line. Horizontal lines remain (again revealed by my empirical study 2006-2011/12) the most effective and high probability trade areas.

 Oil Cl Q15

CL Q15 is a classic example of the horizontal ML and its power and use as a trading tool as seen in my previous example:

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