Nifty with Andrews' Pitchfork.

Hi all,

Here is a chart of Nifty with Andrews' Pitchfork, a different way of looking at the current events unfolding. Will the lower trendline give support in the coming sessions? Looks difficult as we have a negative A/D ratio for about three weeks now.

Regards,

Fibo.

hi sunil,
i think you have wrongly drawn Pitch fork. The counter move or reaction move should be less then the main move, you have drawn opposite!

Well, i have redrawn the pitch fork and shown strong andrew support line, close below this line is indicative of sharp down to volatile move for short term.
However, this wont be a downtrend.

plz check the chart.

thanks.

Hi, Winstonn,

Yes, in one of my earlier post on my blog ( sometime in Sept, www.fobonacci1321.blogspot.com ) I had drawn the pitchfork as you have shown, taking the June low as the point C, but since we have moved up a lot since then, I took the reaction low to 3300 since from this point, on the right hand side, we have a peak and a trough, thus qualifying for the pattern.

But I think you do have valid point and I will make changes according to you. But do please comment on why we can't take 3300 as a reaction low.

Thanks a lot.

Regards,

Sunil aka Fibo.

Hi Sunil

The Start Of Pitch Fork Requires 1-2-3 Pattern Set Up.
The 3300 Reaction Completely Retraces The Point C From You Started The Fork. 3300 Is A Minor Reaction.

Reaction In July Is Broad And Important And Also 1-2-3 Pattern.

Regards,
Winston

Hi Winstonn,

Thanks a lot. Will modify it. Do I have your permission to use your chart on my blog? Will certainly give you the credit.

Regards,

Sunil.

Ya Sure , Great!

Regards,
Winston

Hi Winstonn,

On the web I found a good number of examples where the earlier reaction low is almost retraced by the next trough. Here is one example. BTW I have published your chart on my blog.Thanks.

hi sunil,
i do agree with you, but when the counter trend retraces not more than 61.8% level and we see 1-2-3 pattern, there are high chances that Andrews pitch will give very good entry and exit points.

regards,
winston.

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