Time and Price… Geometry

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Plato had an inscription over his academy

LET NO ONE IGNORANT OF GEOMETRY ENTER HERE

Modern trading, especially on lower timeframes relies on indicators hence price action can be a nebulous concept for traders

What is price action?

Price action is the visualisation of price fluctuations on the y axis versus time on the x axis. On the shorter timeframes this can indeed be dominated by the high frequency algorithms: hence the random walk theory. But despite the algos, market trends can be deciphered on even the shorter timeframes: with higher lows and higher highs in an uptrend; lower highs and lower lows in a downtrend; and the absence of either in a ranging market.

Longterm timeframe price action: GEOMETRY

Whilst the random walk is concluded for even longer timeframes: the student of geometry will always be able to decipher order out of the chaos. Here we have a 3 year spx chart. If we box the price action: what we can see is PRICE has been perfectly squared with TIME for 3 years. We had an impulse move off the lows in 20 months and a correction of half that range in 10 months. Since then we have had consolidation and a breakout. The breakout is confirmed by price breaking the downtrend from the ath to the swing low in October 2022.

Using an Andrews pitchfork off the low following then Corona crash; the ATH and the October low: we have a clear new ATH median line target.

Using our pitchfork to now frame that macro geometry: we can decipher price action as it moves to target. Of course price action may fail in its proposed trajectory. Doctor Alan Andrews hypothesised an 80% probability for such a move; and Greg Fisher validated this in his median line study on Grains.

Geometry… the order out of the seeming chaos of price action

Footnote: all of the above brings us to the stunning conclusion that spx is not in a bear market but has merely corrected the impulse move since the corona drop by 50% in 50% of the time of the impulse; and that new highs are the most likely (but not guaranteed, of course) outcome here.



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Greg Fisher Median Line Study- a great primer on market geometry and validation of Doctor Alan Andrews’ work

dl.abcbourse.ir/dl/Library/book/using median lines an emipirical study.pdf
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Using market geometry we can extrapolate a target of 5200 for spx in July 2023, this of course may fail to to realise. But it is probable.

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*Using market geometry we can extrapolate a target of 5300 for spx in July 2023, this of course may fail to to realise. But it is probable.
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Apologies for the typos my tradestation is a 6 inch phone so editing is somewhat difficult but hey unpicking geometry doesn’t require a fancy set up or multiple indis. You just need to be able to identify swings and read PA. You don’t even need the pitchfork tool…
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Market GeometryTrend Analysis

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