New Tool on HSI (2010-07-08 HSI analysis)

To improve the accuracy of my analysis as well as to find the most suitable way of trading for myself, I am currently learning Andrew Pitchfork. I have tried it on the weekly chart for Hang Seng Index.



I have drawn 3 forks on the chart. We can see HSI is now in the range of long-term blue fork and a shorter-term green fork. It actually beautifully follows the pattern of the forks. The two most recent rebounces are due to the interceptions of blue and green forks, giving support and resistance. Referring to the shape of the green fork, I expect the index going downwards in high speed, breaking the blue fork. Once the blue fork break is confirmed, we can expect a great plunge afterwards. A short entry is better placed at the break of blue forks.

If you want to read more about pitchfork, you can refer to:
http://www.investopedia.com/articles/forex/05/AndrewsPitchfork.asp