I’m constantly asked why I’m so in love with Andrews Pitchfork. In today’s Substack Blog I will answer that question.
Unless a technician wants to crawl into the Gann “rabbit” hole, there is no other technical tool that merely identifies the price / time grid, or vector, as well as Andrews Pitchfork. The weekly chart (and daily to follow) reflects this event. During the nasty sales in Ethereum (as well as Bitcoin and others) prices are held against support offered by the Median Line (gold dotted line highlighted in yellow circle) of the Standard Pitchfork (Gold P1-P3). Without the use of Pitchfork analyzes, potential support and price pivot level at 3,436.40 would never have been identifiable. It also adds credibility to the use of the Pitchfork variant we chose.
It has been said by those who are smarter than me, that the flush is related to the settlement of derivatives and lever positions, and this could very well have been the cause. Whatever the case, we will make others think about it and we will stick to our knitting.
What we are watching closely is the state of the Weekly MACD. The oscillator could not confirm the new price highs in November by not reaching a new high (purple dotted line), but we will have to see a lower low in the momentum oscillator for us to be fully concerned about the technical condition of Ethereum in the long run.