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I have posted before how the price action on charts seem to run at certain angles from high to low or low to high, almost like throwing a ball up and when momentum wanes it loses its trajectory and finds the downward path and vise versa. Here is a gold chart, the trend lines don’t fit perfectly all the time but they are somewhat accurate, nothing I have seen is 100% in chart reading. I can’t get rid of the blue balls on this chart but I included a close up of the recent price action for gold.
I am wondering if you see any value in using this with your cycle work. If this interests you at all I have other indices with trend lines drawn on also, they make a good home made fork
Charts in comments
http://invst.ly/1dmko
http://invst.ly/1dmmz
Included S&P and Russell
http://invst.ly/1dmtk
http://invst.ly/1dmu4
Are these similar to action-reaction lines (cf. Alan Andrews of Andrews pitchfork fame)?
I am not sure if they are but sometimes they look like that, though I can’t find that much symmetry in them.
Sorry Dave, I do not know who he is. What really caught my attention was the way the pricing action would run in three major angles on any chart, it seems there is the impulsive phase off a bottom or the drop from a high, the settled in phase on its way to destination and then the meandering phase when it loses energy and shows topping or bottoming. The same principle as a ball being thrown in the air or bounced on the floor. The lines are all the same, just cloned, from bottom to top of rallies or bottom to top of rallies the trend line goes right through the middle of the top or bottom candle in a lot of cases, the trick is using this with other indicators to pinpoint if the market is turning or not.
Like maybe using it to help time Wolfe waves?
http://invst.ly/1drl6
The red trend placed against candles further down the rally when the blue trend is breached but regains it leaves a trail for us to possibly use that as a break point near the top of the rally, when the red trend is breached at the top of the rally price usually falls. The ball has lost energy and will begin its descent, I will be watching these current rallys to see how price interacts. Hopefully results are positive.
http://invst.ly/1drlv
Thanks for inquiring.