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| I'm not a big fork guy. I've read some Andrews and I've drawn a lot of forks and I just can't get over the hump to believing it works for me. That said, if I was to draw a fork it would be a long term fork. Look at a monthly chart over the last 5 years and pick the highs and lows. That is going to show you some different things.....
-is the fork pointing up or down? That's probably a decent trend for the market. Remember, you have to pick what look like major pivots (we've put in highs or lows.... it will tell you higher highs or lows)
-What kind of range is there?
-Are we trading in the top or bottom of the fork range?
-Have we violated the fork, do we keep trading back to the line and bouncing off it, etc?
I can spend an hour with a fork that I drew and only be looking for some of this more obvious stuff. The guys that really know forks could write a book about each one, so I can see why they don't even bother trying to explain it.
FWIW, I haven't drawn a fork in the better part of a year. It's a tool, much like a welder, I can make it work sometimes but I'll leave it to a professional to do it usually. I like to look at some technical indicators and have a few general rules for making sales ( market trading above 20 and 50 day moving average with an RSI over 58, sell only if funds are long, I watch the bollinger bands pretty closely for a turn of direction, there are a few more). Charts work if you understand them. Forks are a whole different level. | |
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My view of Technical Analysis
