Timing_is_key

ACTION / REACTION THEORY APPLIED TO EURUSD ( M )

Education
FX:EURUSD   Euro / U.S. Dollar
46
IDEA: THE USE OF THE 0-3 LINE TO DETERMINE NOT ONLY PREDICTIVE TURNING POINTS, BUT ALSO, THE SLOPE OF THE NEXT MOVE!!

This chart may seem confusing at first glance, however I will explain how to interpret it the best I can.

First , Each parallel pairing is color coded with 1 Center Line (C/L), 1 Action Line (A/L) & 1 Reaction Line (R/L) and are equidistant to the Center Line.

Second , Each Center Line ( C/L) MUST pass through a 0-3 Pivot Point ONLY.

Third, Each Action Line (A/L) must pass through a Low Pivot & a High Pivot, This ensures that the Reaction Line has a high probability of being "TUNED IN"

Observation 1: Focus on Predictive Turn 1: As the market Rolled Over it followed The Predictive SLOPE, the RED downward parallel #3(RL). At this point you would have drawn in your BLUE #1 (0-3) C/L, #1 (A/L) & most important the #1 (R/L): The Intersection with #3(R/L) would not only given you the TURN 2 but also the Predictive SLOPE ( In Blue) of the next move.

Observation 2. We are now at the intersection of the Upward Blue Line ( #1 R/L ) which is also the #5 (0-3) Center Line and the Green Downward Parallel #2(R/L) and the market is just rolling over!.

Observation 3. Notice where the Green Downward Line Intersects the Upward Purple Parallel #5(R/L), Here I am firstly predicting the Downward SLOPE, Second: Predictive Turn 4 at the intersecting lines ( Green & Purple) and Third Upward SLOPE ( Purple) of next move to predictive turn 5:).....Notice how it's also hitting the UMLH parallel of the pitchfork!

Observation 4. The Blue Downward Facing Pitchfork Median Line ALSO intersects Predictive Turn 4 PRECISELY.

I hope this has been educational.

TIK
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.