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?
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!
Looks like there some reading to do! Have you ever heard of the book The Best Trendline Methods Of Alan Andrews & 5 New Trendline Techniques by Patrick Mikula?
da-net - Thank you very much for those excellent resources. If only every thread on ET was as informative as this one. Regards and good trading to you...