The intersection of the median line (ML) of the upsloping pitchfork (PF) and the warning line (WL) of the downsloping pitchfork, creates an area of confluence (highlighted in turquoise) where there are alot of sellers in position. Confluence areas gives the trader an edge into the future in spotting massive accumulation of buyers and sellers.
As price approaches this confluence area from below on the day of the BREXIT referendum, price will test the confluence point before it does a massive move downwards, breaking the lower parallel (LMH) of the upsloping PF, and gravitate towards the median line (ML) of the downsloping PF.
Overall market flow is down and the downsloping PF(red) controls the how price will behave.
Price frequency has been shifted between SH-1 and SH-2, with the same bandwidth between ML and LMH.
As price retraces upwards, it will meet resistance from SH-1. If it does not break SH-1, it will be trapped between SH-1 and SH-2.
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As price approaches this confluence area from below on the day of the BREXIT referendum, price will test the confluence point before it does a massive move downwards, breaking the lower parallel (LMH) of the upsloping PF, and gravitate towards the median line (ML) of the downsloping PF.
Overall market flow is down and the downsloping PF(red) controls the how price will behave.
Price frequency has been shifted between SH-1 and SH-2, with the same bandwidth between ML and LMH.
As price retraces upwards, it will meet resistance from SH-1. If it does not break SH-1, it will be trapped between SH-1 and SH-2.
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