I am constantly asked why I am so “beeping” enamored with Andrews Pitchfork. In today’s Substack Blog I will answer that question.
Unless a technician wants to crawl down the Gann “rabbit” hole there is no other technical tool that simply identifies the price/time grid, or vector, as well as Andrews Pitchfork. The weekly chart (and daily to follow) reflects this occurrence. During the nasty selloff in Ethereum (as well as Bitcoin and others) prices held at support offered by the Median Line (gold dotted line highlighted with yellow circle) of the Standard Pitchfork (Gold P1-P3). Without the use of Pitchfork analyses that potential support and price pivot level at 3,436.40 would have never been identifiable. This also adds credence to the use of the variant of Pitchfork that we had chosen.
It has been said by those smarter than me, that the flush was related to the unwinding of derivatives and over leveraged positions, and that might very well have been the cause. Whatever the case, we will let others ponder that and we will to stick to our knitting.
What we are watching closely is the condition of the Weekly MACD, The oscillator failed to confirm the new price highs in November by failing to reach a new high (purple dashed line) but we would need to see a lower low in the momentum oscillator for us to be fully concerned with the technical condition of Ethereum in the long term.