My daily chart looks like someone tipped their cutlery drawer onto it there's that many forks on there. Put this one up as it is a lot cleaner and these two forks describe the price action well for the past 6 months.
You can put a fork anywhere you get a low high low or high low high sequence however not all of them will be "hot". A short term fork going back a few months will probably be too steep and the price will drift out of it sideways before too long.
A"hot" fork will have lots of hits on the median and the tynes and extensions.
I'm away from the computer otherwise I'd throw up the crowded daily and you'd see what i mean about a busy chart.
I posted a "busy" chart on the PLS chart thread last week and it's not everyone's cup of tea. For starters you get accused of having so many lines on the graph that "the price would eventually hit one".
However I think the Median line theory is an excellent method to determine levels of support and resistance. See the CXO chart thread and my post from earlier this week to see how good they are at predicting resistance levels especially if two different forks coincide.
For an introduction to this method of charting look up www.pitchforkplayground.com. Shows you how to draw a chart like this step by step.
GMM Price at posting:
58.0¢ Sentiment: Hold Disclosure: Held
