praveen.bhatiya

Action/Reaction trading method as taught by Dr. Andrews

NSE:JINDALSTEL   JINDAL STEEL & PWR
I am introducing today Action/Reaction trading method as taught by Doctor Andrews (invented the famous Pitchfork method) with an example.
The A/R method requires a "center-line", A line drawn across 3 or more pivots without touching prices in between.
Once the center line is drawn, the next step is to locate a previous low or high pivot point to use for drawing an action line, It is labeled Action line.
Next, a parallel line is drawn at the same distance from the C/L as the corresponding Action line.
Andrews has observed that prices are likely to stop or reverse at Reaction Line.
Please feel free to ask in case of doubts, I would try to answer at my earliest.
Trade closed: target reached