Andrews Pitchfork Chart of the SP500 June 18
I thought it might be interesting to post the current Andrews Pitchfork chart of the daily S&P 500 to see what that tool might be indicating.
To use the pitchfork tool, select a key low, draw to a key swing high, then draw again to another key swing low. Experiment with this and keep in mind the dominant trend, as to whether you’re looking to find a retracement or continuation move in regards to the trend.
In this case, the pitchfork is rising to reflect the underlying move up from the March lows.
Pay particular attention to the midpoint (50% line) of the Pitchfork for key support and resistance inflections.
We just recently formed a doji which led to the end of the week brief rally which is challenging the 20 day EMA from the underside as possible resistance.
Again, play around with this tool which is available on most charting packages for more insights.
Corey Rosenbloom, CMT
Afraid to Trade.com
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If you anchor the pitchforks at the highs and lows intead of the body..which the purists do you get a whole different look
http://tinyurl.com/neh3q7
Precisely – this would imply an even more bearish scenario, as of today's intraday high, we tested the mid-line from underneath as it could serve as resistance instead of support. Little nuances over a long time make a big difference.
When using advanced technical methods such as this, I choose to use the “truncate the spikes” method as taught by Constance Brown in her book (and teachings) “Technical Analysis for the Trading Professional.”
My experience confirms her work that it's often better to 'truncate' spikes and use closing prices (or meaningful prices) which the market tends to respect better.
Perhaps it's best to use both methods – the classic and the advanced – to see the difference when there is one.
If you anchor the pitchforks at the highs and lows intead of the body..which the purists do you get a whole different look
http://tinyurl.com/neh3q7
Precisely – this would imply an even more bearish scenario, as of today's intraday high, we tested the mid-line from underneath as it could serve as resistance instead of support. Little nuances over a long time make a big difference.
When using advanced technical methods such as this, I choose to use the “truncate the spikes” method as taught by Constance Brown in her book (and teachings) “Technical Analysis for the Trading Professional.”
My experience confirms her work that it's often better to 'truncate' spikes and use closing prices (or meaningful prices) which the market tends to respect better.
Perhaps it's best to use both methods – the classic and the advanced – to see the difference when there is one.