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RESEARCH
Secondly, minor violations of support do not reduce the veracity of the indicator, whether they be on an intra-period or a closing basis (note chart of the NASDAQ 100 E-Mini Future in Figure 3 below). Only when price runs past with conviction, and/or ‘lingers’ in a state of violation, does it suggest that there has been a technical change of the angle, or frequency, in the price/time grid. FIGURE 3: MINOR VIOLATIONS DO NOT SIGNAL A TECHNICAL CHANGE
Thirdly, and most importantly, in most cases median line/pitchfork analysis is a superior analytical tool when compared with traditional trend line methods as it gives the chartist far more technical data points to consider during his or her analysis. FIGURE 4: MORE TECHNICAL DATA POINTS CREATE A SUPERIOR ANALYTICAL TOOL