The Model Is Confirmed
Price passed through each of the three EXITS as indicated in the model, on schedule at the levels expected. This model shows clearly the power of using Lines Of Force as a method for ascertaining risk.
Uncanny
Lines Of Force is a coincidental analysis of price over time. That's a fancy way of saying it's based on nothing more than coincidences. The modern western mind has trouble accepting that coincidences carry meaning. I get it. This shouldn't work.
But the truth is this: I have drawn hundreds of these models and in every one where there is a Fall Channel, the Fall Channel Control Line indicates precisely and accurately where Price will be at a particular point in time.
This is true in just under 99% of the models I have studied that contain Fall Channels. Coincidence? Except for the Control Line, all the other lines are coincidental. So, yeah. Coincidence.
Up Next
Now price must find its way through the right rail of the EYE. Very little can be inferred from this model about exactly how this might happen.
These are the things I expect to be true here:
Control Line CL1 may continue to act as a loose support level.
Control Line CL2 may continue to act as the de facto control line as price approaches the right rail.
It is entirely possible that Price may fall to test the lower rail of the extended fall channel. Price may test the outlying rail as well.
It is equally as likely that CL1 with its close reflection acts as a 'reverse EYE'. If so, Price will find a stronger support there and may rebound out of the EYE over the next week or so.
Until Price returns and closes above long term line LT1 there is a chance that it will not recover soon. The most advantageous route appears to be following the dotted reflection of the short term thrust out of the EYE.
Last Friday's Model and Indications
Tuesday's Update and Indications
Learn More About Lines Of Force
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