Babson
Action & Reaction At WorkThis is how Action/Reaction roughly works:
1) take the center of a major swing
2) mesure back and
3) project it forward.
Observe how price is acting/reaction at the R-Lines.
This is the same principle like: "If you push to a wall, the wall is pushing back."
On my new Blog-Post for registered FreeFTG members, I'm going into details about this technique that stem from Newtons 3rd law of motion, and adapted to the charts by Dr. W. Babson, who made a fortune and started the Babson Collage.
It pays out to know more then just common trading knowledge...
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TLT - This should open your eyes a litte moreJust look, study and begin to see.
If you know the rules about Action/Reaction, about the Forks, you have a better sense what potentially could happen when price reaches the centerline, or breaks out of the U-MLH and comes back ("overshoot" - "back to centerline" in pink).
Follow each bar, from left to right...slowly...think about what's going on bevor going to the next bar.
Feel how markets swing, up and down and up and down...breathe in, breath out...contraction, release.
As above so below
Drop me a message if you like it, have comments or want to learn more about the Forks.
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USD - Hell of a range and on the way to the south?P5 is reached...at least it looks like.
The tiny lower close is very suspicious...
At least price broke out of the "creative" downsloping Fork and reached the CL.
From here price either zooms through the CL, or comes down to the L-MLH.
Chance for the walk to the south are 80% - same as going to the CL!
And why NOW?...well, as i said, price reached the CL. So it's at the center OR
it is at a potential extreme. If you think about it for a while - the CL could be the
upper extreme...if you threw in a WL (Warning line = 50% projection to the downside)...
Think about this...
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NSC - Dead End for the Bears?This Company was mentioned in my options group
and it looked very interesting to me. So i got my
hands on it and found a nice potential trade.
The fast run down seems to have a end.
Frequency catched up bevor, then shifted and now
we find price at the WL (Warning Line), where the
shifted Frequency meets Action/Reaction.
Potential for a long with a nice stopp below 71
seems a fair bet for a PTG between 95/100.
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SPX - Similarity...uncertainty...now what?The 2011 pattern looks very similar to the one we have now.
Even the priceaction from the Bars look nearly the same to me.
Facts for Long
- similar pattern as in 2011
- support at the L-MLH is pointing North.
- no real LT low is broken!
- so far a wide distance from the open to the actual (potential) close
Facts for Short
- the frequency shift (red slidings) on the top, warn about the temporarily potential Max. High.
- if price is reaching the CL and U-MLH (Convergence), ther's a high probability that it is a classic Test/Rtest of the "zoomed" Centerline, and that price is heading south, to the next line - the L-MLH (Lower Medianline Parallel)
- if price would continue north, it had to eat through the upper resistance block
So, really no cristal clear statement.
How could we trade? How about income trades with options, where wo don't even have to know where the market is going?
Take credit from below the market AND from above the market?
Whereever this market will go, it's time to play it save...but also to capitalize on the opportunities...
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Gold - Potential to fall below 1100Trade what you see...Facts, nothing more.
In this Chart the facts are, Gold has had havy resistance athe the CL's and the U-MLH, now breaking the most important, Big-Boy CL's again to the South.
Steam is blown in the wind and many probably getting hurt...again...
Longterm i see Gold far below 1100, not just at the CL.
...but this is just my opinion, no facts, just reading in the Espresso ;-)
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