What forks do for you is to define your trading plan…it gives you definite lines to work off of…Andrews says that there is an 80% chance of a median line getting hit…what does that do for you? Well, it gives you a target…by which you can use your risk reward parameters to formulate your trade…each time a line is crossed…you look for the next line to be hit…if it bounces off a line…then you look for the next line to be hit below or above whichever the case may be…

The size of the fork determines your long or short term time frame…in the case of the beans contract…we broke of the red fork…and headed to next line…the blue fork was tested and held…making it an 80% chance that the median line will be hit…we are also crossing the red warning line…so we look for the next warning line to be hit…the green fork has hit the median line and is now threatening to break out of that fork…if it breaks out of that fork…we stand a good chance of a warning line being hit drawn off that green fork…

This is really purely mechanical in nature…meaning that if prices break or bounce off a line there is a way to trade it consistently…with rules…giving you a trading plan.

I had a really hard time formulating a plan while doing the regular analysis that most traders use…I was never consistent with what I was doing and it was like I was taking a stab in the dark on every trade…wondering if what I was doing was going to work…probably due to the fact that I am not the sharpest knife in the drawer…you and I have been around these parts for a long time…you have seen me during the Café days post my charts on the web I can still remember the day Shaggy opened the café…well…it wasn’t until I found the forks that my trading stopped going in circles…how many of you are struggling with your account…just surviving…sure I was hitting a few now and then…but seemed like just when I was up…I took a few hits and was right back at the same place or worse…no more stabs in the dark…consistency breeds confidence…if you are not confident with your signals…you will never win…

Hope this helps some of you out there…there really is enough money out there for all of us…and it is my wish that you all will enjoy the profits…Merry Christmas and a Happy New Year…

Best of good trades, Spike