Action/Reaction Lines are based loosely on Newton's Third Law of Motion. A significant price swing is chosen and a Center Line (or Trendline) is drawn. Then a parallel line (Action Line) is drawn through a preceding pivot and a matching Reaction line is drawn at an equal distance from the Center Line. This can be done for several pivots. An alternate method is to draw one Action Line and then draw Reaction Lines at equal intervals. Look for reversals near the Reaction Lines.
Look for significant price action at or near the Reaction lines. See Disclaimer.
To draw Action/Reaction Lines, use the Parallel Trendline dialog (press the
button, or choose Draw Parallel Trendline Here from the menu) and then click on any point through which you want the Action Line to pass (if you use the menu, the point on which you clicked for the menu will be used to draw the line). Depending on which option you chose, one or several Reaction Lines will be drawn. The Action/Reaction Lines are an option associated with Parallel Trendlines.
While the Action Line is normally drawn to the left of the Center Line, with the Reaction Line(s) to the right, you can reverse this if you wish.
Once you have drawn a set of Action/Reaction Lines, you can adjust all lines in the set by moving any one of them.