The Median or Centerline:
The Median (Centerline) Line is the central element of the Pitchfork and acts as the equilibrium point. Price tends to oscillate around this line, and it often serves as a strong reference for potential reversals or price targets. A price move back toward the Median Line is common after significant moves away from it.
Pitchfork (Red):
The red Pitchfork, drawn through significant price points, provides the overall trend direction and shows the potential path to the downside. The red line indicates a bearish bias in the current setup, as it has been guiding the price lower.
Green Circles and Arrows:
These represent key areas of support.
The lower green circle and green arrows indicate price has found solid support in this region. The price has been bouncing from this support level, showing that it is reacting to the [ower boundary of the Pitchfork. This behavior aligns with the rule that the price tends to respect these boundaries, creating a foundation for a potential move back toward the Median Line.
Price Action Analysis:
The price recently tested the lower green circle and green arrows, bouncing off this support level, which is a typical reaction in a Pitchfork setup.
According to the Median Line theory, when the price moves too far away from the Median Line, it often returns toward it. Therefore, the bounce off the lower boundary suggests that price may now be setting up for a bullish reversal toward the RED Median Line.
Bottom Line:
The price action is following the general Pitchfork playbook. The bounce from the lower green circle suggests that the price is setting up for a potential bullish reversal toward the RED Median Line.
The next major test will be the upper resistance in the red Pitchfork, after the break of the Centerline. If the price can break through this resistance, a strong move higher is likely.
Keep an eye on this critical point!
The Median (Centerline) Line is the central element of the Pitchfork and acts as the equilibrium point. Price tends to oscillate around this line, and it often serves as a strong reference for potential reversals or price targets. A price move back toward the Median Line is common after significant moves away from it.
Pitchfork (Red):
The red Pitchfork, drawn through significant price points, provides the overall trend direction and shows the potential path to the downside. The red line indicates a bearish bias in the current setup, as it has been guiding the price lower.
Green Circles and Arrows:
These represent key areas of support.
The lower green circle and green arrows indicate price has found solid support in this region. The price has been bouncing from this support level, showing that it is reacting to the [ower boundary of the Pitchfork. This behavior aligns with the rule that the price tends to respect these boundaries, creating a foundation for a potential move back toward the Median Line.
Price Action Analysis:
The price recently tested the lower green circle and green arrows, bouncing off this support level, which is a typical reaction in a Pitchfork setup.
According to the Median Line theory, when the price moves too far away from the Median Line, it often returns toward it. Therefore, the bounce off the lower boundary suggests that price may now be setting up for a bullish reversal toward the RED Median Line.
Bottom Line:
The price action is following the general Pitchfork playbook. The bounce from the lower green circle suggests that the price is setting up for a potential bullish reversal toward the RED Median Line.
The next major test will be the upper resistance in the red Pitchfork, after the break of the Centerline. If the price can break through this resistance, a strong move higher is likely.
Keep an eye on this critical point!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.