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Fan Analysis is the analysis of fan and singularity patterns from the extremely innovative Component 4-Line, which uses STX technology from the Ocean Pro library.
First of all, in the photos of the Component 4-Line, look for triple or quadruple singularities, where three or four lines come together in a point or close to a point. These are areas of great coiled energy, and chances are good that a substantial price move, up or down, will develop out of a triple or quadruple singularity.
What will the Component 4-Line look like coming out of a triple or quadruple singularity? The pattern that is made takes the shape of a fan and so that is what we call it. This is the subject of Fan Analysis, which predicts the nature, shape and size of the fan coming out of an STX triple or quadruple singularity, and thus the potential nature, shape and size of that market going forward.
Also part of Fan Analysis is the study of how the different components of the Component 4-Line interplay inbetween singularities. This contains an absolute universe of information about what a market is doing internally and so where its future lies.
Another area of interest is the interplay of the three lines of the Triple STX on price. The interplay of the fast, medium and slow indicators in the Triple STX are extremely revealing, especially when combined with the Shadow, which is also part of the Triple STX.
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