Charts SYSTEMS

[snootmagruder]

JLS, You seem confused about forks, so let me help you.

In this particular case there is no justification for a fork at all because there is no data that touches either the upper tine or the lower tine

the median line is what's important here and was what I referred to in Michaels question.

Sloping lines, such as channels and forks, are not support or resistance levels.

take a good look at the median line and see how price either reverses at it or has to gap through. This is called support and resistance.

Forks are very subjective -- they do not automatically exist in the data.

Yes,forks are easy to put in the wrong location and they can then be detrimental, as your clusters of little dots can also lead one to expect a reversal just to see price sail past as it did with that cluster higher. Just how would you go about picking the right cluster? Could be called subjective. Also, the fork is already there,occuring naturally you just need to find it. It can be amazing that price can create by reversals and gaps the outline of a fork once you find that position. The timeframe can be minutes as well as decades for these formations.
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