Chip,
On the example of the most recently drawn fork, you can see that the market rallied off that line. You can generally expect the market to rally very sharply from that line. If it rallies as it did and then returns to that line, or not rally at all and just hang around there for a couple of days, then the market will go lower. The reverse is true of a pitchfork measuring resistance. Now, today, we sold off, if we continue to sell off and take out and/or hang around Friday's lows, the market will sell off further and move toward the lower parallel line. Tomorrow should rally prices away from the lows again, but if we continue lower, it would say there is weakness. The odd thing about the center line, it acts like a magnet, it attracts the market, but when it finally touches that line, it changes poles and repels prices very quickly.
I discard the fork when the next fork can be drawn. The most recent fork is the most reliable.
Now, suppose the low holds and we rally. You can already draw the next fork. The December high and December low just made on Friday, bisected by the November low. That line is a rising line and should attract prices higher. If that attraction fails and prices return to the center line of the first fork, prices will move even lower. If prices move higher from here, the rally will attempt to reach that newly drawn rising line. Let's see what it does over the next couple of days.
GZ
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