NDX, Dr Andrews would be proud
Updated
I do not track this scrip:NASDAQ but I just wanted to take a look after the recent big gap down and it surprised me how well it seems to be following the basic pitchfork trading theory
The points mentioned on the chart correspond to the following rules:
(0) prices at any point will gravitate towards the median line
(i) price after reaching the median line will reverse OR (ii) zoom with big candles/GAP through the median line
(iii) price will reverse from the lower and upper parallel (support/resistance lines) towards the median line until it doesn't. At some point price will go outside the pitchfork's boundary lines(the prongs), at which point the trend character may be said to be changing.
The points mentioned on the chart correspond to the following rules:
(0) prices at any point will gravitate towards the median line
(i) price after reaching the median line will reverse OR (ii) zoom with big candles/GAP through the median line
(iii) price will reverse from the lower and upper parallel (support/resistance lines) towards the median line until it doesn't. At some point price will go outside the pitchfork's boundary lines(the prongs), at which point the trend character may be said to be changing.
Note
30 Sept: Price has reached the lower median line which should act as a support. Will be interesting to see how price responds here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.