Arrow Charts Theory

In Arrow Charting we attempt to look at the price action of a market on three different levels simultaneously. The red arrows represent the strongest forces acting on the market, the black arrows represent moderate forces, and finally the blue arrows correspond to the weaker forces. If an arrow is pointing upward, then this means that "support" should be encountered if the price falls to the low of the day over which that particular arrow is drawn. Conversely, "resistance" should be found at the high of any day under a downward pointing arrow. When the market reaches these critical levels there is often a few bars on the chart where one can observe a battle going on between the forces propelling the price in the direction that it's traveling and the opposing forces (strong, moderate or weak) symbolized by the arrows. By observing this "battle" and where the market goes in its wake, the technical analyst can gain insight into the trend that the market is taking. The red arrows tend to signify longer term forces, the black arrows intermediate term forces and the blue arrows represent shorter term forces. Thus, when viewing a finished arrow chart, the technical analyst sees a "three dimensional" perspective of the price action instead of the traditional "one dimensional" view seen on ordinary bar charts or even Candlestick charts.