Thursday, 12 March 2015
As can be seen belwo we have bounced of the lower median line parallel of the black up sloping fork, yet we are still under the downsloping reaction line ( seen in dashed red). If we break higher towards the upper median line parallel of the black fork then its a simple 80% probability we are going higher but as i indicated yesterday the power still remains with the bears and this is a perfect opportunity to chose a short entry with a tight stop. We use the b-line stochastic indicator and look for two confirmations ie 2 time frames. Look how the reaction lines ( all drawn automatically using the MT4 Pitchfork tool) change location below. The fact is that both locations are correct and there is more than one location for each reaction line which depends on the time frame.