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Medianline

NatGas NG1! - Further Decline Ahead, P5 Possibly ReachedAllen Andrews gave us great rules. The P5 rule is one of them. As we see in the chart, P5 could be reached. What does this mean? It's an indication that price is at it's peak and a potential turn is ahead. Furthermore we have reached the center-line, where a) price will beak through, revisit and continues or b) price will turn and trade to the opposite direction, which would be far below at the L-MLH (the lower parallel). I like to wait for some kind of confirmation. One of these I have in my arsenal is the break of previous lower highs. You can see the short line in the chart, where I would start to take action. So, we have another LT chart to observe. Keep it in your watch list - it could be an epic play.
NYMEX:NG1!Short
by Tr8dingN3rd
2
ES1! - S&P 500 Target At P5If you followed the projections of the S&P 500, you where able see live, day by day, how the pitchfork/medianline tools and framework is applied to the markets. And more important, how we as trader can rely on these tools and rules. In the chart you see that the market swung up to create P4. It's really picture perfect so far. Now we approach P5. But know that we can't "predict" that a) P5 WILL happen for surre and b) WHERE it will be, before the market turns north again But we know that the probability is super high and we can expect P5 at least below P3. A nice gift from the trading god would be a pullback to the prior support which was broken yesterday. I always try to scale in, be it by futures, stocks and even options. However, I will be very opportunistic and (partially) out of the trade when the market is not trading within the rule-set. Stay focused and trade small, there will be plenty of opportunities in these markets. So there's absolutely nothing great in trying to be a hero.
CME_MINI:ES1!Short
by Tr8dingN3rd
BTCUSD - Bitcoin approaching the CL. Potential for a bounce.The current target is still the center line of the pitchfork. From there we have a high probability to get at least a bounce. I would not expect a trend change, since BTC is clearly following the bear market. And why wouldn't it? BTC is a currency. People use it as a thing of barter the same way as with Fiat-Money. What ever you use to buy, it's value comes from people believing in it. So, if inflation starts to kick in (which it already has immensely) , the value of the "thing" ,be it BTC or Fiat, goes down. You have to pay more for the same goods as months before. So don't stick in the false believe that BTC MUST go up, just because it's BTC, because it could free people from Fiat, because it's hip etc. This is how I think and trade BTC. It's here to serve me, not the other way around. I have to make clever and thoughtful decisions if I trade it. Nobody is paying me for being a Hero, holding BTC to the bitter end. Instead we should follow the Pendulum that swings back and forth. Be wise, not opportunistic.
BITSTAMP:BTCUSDShort
by Tr8dingN3rd
IWM - P5 arrived? If so, we bounce!The #IWM has traded in a wonderful way. Watch how the #Medianlines , the whole #Pitchfork provided support, resistance and - if you know the rules, how they could be applied to make some $s. However, we arrived on the P5, which is potentially morphing to P0 for the next move to the upside. Alltough I personally don't believe it because of this market environment, chances are high. ...can you hear the emotions nagging on me to un-follow the rules? §8-) If we open next week below the L-MLH, we would trade further down to the WL (Warning Line). As far as my trades are designed, I risk tiny and try to let them run by following the rules and Money-Managent. #iwm #medianline
AMEX:IWMLong
by Tr8dingN3rd
ES1! - S&P 500 Too High Too FastFrom yesterdays session, they strangled the S&P too high too fast. This will probably lead in a nice short micro crash to the center line. Do you see the daily chart? Price is exactly at the center line, and a 50% warning line confluence. Price just follow the rules of the Andrews Medianlines: "If price breaks through any Medianline, it pulls back to it, before continuing it's path." This would indicate that price, even on the daily chart, would decline further. And chances are, that the short term trade to the red center line contains a high chance to work out. Details: - price opened outside the orange pitchfork = price is reversing (south) - a test/retest up to the L-MLH of the orange pitchfork is highly possible, even above the last high of 3973.75. - the stochastic is in overbought territory, preying to relieve some steam The Trade is cooking. Now there's nothing else to do than wait and observe. Happy Friday everyone.
CME_MINI:MES1!Short
by Tr8dingN3rd
1
Oil Futures (45) Long Gap ReversalPrice runs up out of a relative low, Buyers step up and try to make a new high and confirm the major reaction Leg. Sellers holding at the high and pullback into a major reaction, buyers step up to the consolidation at the centre of the impulse leg up and make a new high. Buyers try to step up, break outs get washed and pulls back to re-test the minor confirmed low. Price finds orders and begins to consolidate, sellers press price into the buyers, they try to hold and expand up into the press before getting rejected with a WRB gap down. Minor confirmed low gets washed, price expands into the relative major pullback and zooms back through the sellers to land on the backside of the WRB gap down. Trading the major impulse leg back to balance. Push of the press up
NYMEX_MINI:QM1!Long
by AleMeo97