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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (14430)	2/2/1999 8:48:00 AM
From: Chip McVickar	Respond to of 44573

Robert, There are actually 3 forks on that chart. #1 Draw the spread-the H/L between 1/19-1/25 and Bisect it. Draw a middle tine from the low befor 1/19 Then draw the 2 other tines The SPX has walked up the lower tine for days #2 This fork is preceeded by another which was the "set-up" Bisect the spread- Low before 1/19 and the High after 1/19 Middle tine comes from the High before 1/11 Draw just the middle tine (use a dotted line for contrast.) The SPX bounced off that m-tine and created #1 fork The time projection confirmed the move....coming into play right where the market 1st broke the lower tine and returned. #3 This fork has not yet formed, but with any down market, it will... Its middle tine would come off the High after 1/19 and bisect the market trend since before 1/25...to where the turn down occurs. This forks time projection: If the market breaks down today 2/2....Then a new fork will be formed and this t-proj is for thursday 2/4 Notice that the interday high and close of 2/1 did not touch the L-tine, that is signal....if the market doesn't close that gap probabilities increase for a new fork formation. The middle tine of #3 rests at 1234-35spx ± and this would be a logical point for support or atleast a pause in a stronge down draft. But you must also go back to the larger forks off Oct to see the whole picture...where those tines sit are stronger points of containment. iqc.com . If you have other questions 'PM' and I will answer. This is classic fork formation....and all you need to know about drawing them....the rest is interpretation and some other subtlties learned through watching them. Chip