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action/reaction lines
- Thread starter inks2002
- Start date
Quote from inks2002:
Anyone have any good resources on Action/Reaction lines, the concept started by Roger W. Babson? Anyone ever use them?
1st....the andrews fork method is NOT reliable all the time in all markets, this is indirectly stated by andrews in his AR course. available free here;
http://www.medianline.com/medianlineinfo/actionreactioncourse.html
2nd...you should watch as much of tim morge's videos as are available everywhere incl the CME & moneyshow...you should test everything presented in them
3rd...mircea dologa has done extensive research on forks and his work does NOT duplicate Tim's...i do not have his book, YET, but he has published several articles available online
4th...there is a gent in CA (ron jaenish) that studied under andrews & helped compile documents for andrews...he also has different ways of using forks...i've personally talked w/him and have seen quite a bit of his ways (youtube).
5th...there is another gent that offers an email course...do not know mich about his work
Yes, I use them, but not the way the "gurus" teach
I had read an article in an old Technical Analysis of Stocks and Commodities by ron jaenish and this is what got me interested. He did not use pitchforks in the article though, rather he drew action and reaction lines around this "center line" and determined on price action against the lines where to trade. Heard anything about that or is that more or less the pitchfork?
Quote from inks2002:
the center line was a contructed by two major high and low pivots on a chart. My issue is in contructing these center lines.
I do not want to influence your own discovery, so I will only answer generically.
In Andrews Action Reaction course (link above), Andrews discusses many different methods and observations like;
Pitchforks (aka median line & parallels), drawn w/ 3 alternating swing pivots
Hagopian lines (reaction lines used with forks),
Schiff median lines (aka 50% lines)
Action Reaction lines (low & high of a swing) carried forward and backward thru time parallel to original swing
10% swings, drawn like a fan from a low or high to multiple intermediate swings
low to high or high to low trendline w/ parallels capturing the intermediate swing
0 to 4 trendlines connecting the lows of two swings
skewed expanding pivots.....and lots more
John Crane uses a form of the fork w/ his version of reaction lines...has a book & DVD
Dologa uses a form of Hagopian lines on skewed expanding pivots...
http://www.pitchforktrader.com/
Janeish has a group on Yahoo, but you MUST buy his book to join, he also has a course that teaches his methods
http://www.precisiontrader.com/andrews_basic.htm
Spend your time SLOWLY understanding the original AR course because it covers so much and it leaves out even more for you to discover on your own if you are inquisitive. Remember most that ALL of the above are based on the work Andrews pioneered with the help of Babson and Merechal.
There is NO HOLY GRAIL in trading, if you are looking for one it is a futile search. Now go put the study time in!