Price has also zoomed through the blue Median Line and now appears to be consolidating around the ML.
Both of these ML's suggest higher prices from here - perhaps after price "rests" and consolidates around the ML's.
EUR/CAD 20 Minute Chart
EUR/CAD 20 Minute Chart - CLOSE UP
08/18/08: Notice how price has been near perfectly contained within the downsloping red Median Line set. Price temporarily broke through the lower Median Line parallel, so I added a sliding parallel. I added a sliding parallel above the upper Median line parallel equidistant as the sliding parallel is below the lower Median Line parallel.
Price is cycling perfectly in the Median Line set, just a little "wider" now.
I drew in a blue Median Line set and price appears to be contained. Price reversed at an area of confluence at the red sliding parallel and blue upper Median Line parallel. Now, it appears price has reversed again at the confluence of the red sliding parallel and the blue Median Line.
Price has now reached a decision point. Back down into the red Median Line set, or is it time to break upward? The areas of confluence suggest lower prices back down to the red Median Line or lower.
AUD/CAD Daily Chart
08/17/08: Price has tested the Median Line set a couple of times. Price has now reversed at the Median Line. We will see if price finds support at the lower Median Line parallel.
S&P 500
08/17/08: Price moved up through the orange upper Median Line parallel - on to the orange sliding parallel or the green upper Median Line parallel.
08/10/08: I added the orange Median Line and upper Median Line parallel to see if price decides to head up and test that line. Price tested the upper Median Line parallel early in June. Price did fail to reach the Median Line, so I drew in a sliding parallel above the Median Line and another above the upper Median Line parallel equidistant to the sliding parallel above the Median Line.
At this point we would expect price to head upward toward either the orange upper Median Line parallel, the green downsloping upper Median Line parallel or the orange sliding parallel. We would then look for signs of weakness or reversal as price reaches each of the lines. If no signs of weakness are present - price will likely continue upward toward the next line.
Jay sent me a chart of the NQ e-mini with a similar pitchfork, so I thought I would add it to the S&P 500 chart. Thanks, Jay!
Earlier comments: Here is a chart I have been watching. The S&P 500 has been reasonably contained within the downsloping red Median Line set. I have a longer term upsloping light blue Median Line set as well. I recently drew in the downsloping green Median Line - notice I did not draw in the Median Line parallels. It was interesting that the red, blue, and green lines all met at about 1125 - notice the white circle.
If price remains within the boundaries of the red Median Line set, which it has for, well, nearly a year, we will see if it still has power.
The green Median Line has not been tested or shown much yet. I just found it interested how all the lines seem to be drawn together towards the end of August/beginning of September around 1125.
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I thought I would show a chart illustrating the techniques for figuring probabilities as I described in my book,
