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The Action & Reaction Lines concept was kept secret from the crowd for many years. If you browse through the technical analysis literature one can see that this topic was rarely treated. This well kept secret represents a real mystery. The first to mention this concept was Roger W. Babson and then later Dr Alan H. Andrews. Both of them practised this set-up with huge success, making profits of millions of dollars. The efficiency of this mechanism is based on Newtonian principles.

Definition & Historical Foundation

The Action & Reaction Lines set-up is formed by three lines: a Center Line, an Action and a Reaction Line where the Center Line is encapsulated by the Action and Reaction Line.

Sir Isaac Newton (1642-1727) has claimed that:

Truth is ever to be found in simplicity, and not in the multiplicity and confusion of things.

He synthesized the works of Descartes, Kepler, Copernicus and Galileo, writing several books. His genius marked not only the 17th century but also the future of mankind. In his works, he mentioned:

Geometry is founded in mechanical practice, and is nothing but a part of the universal mechanics … the description of right lines and circles, upon which geometry is founded, belongs to mechanics. Geometry doesn’t teach us (how) to draw these lines, but requires them to be drawn.

He mainly considered the topics related to gravity, elastic force, levity, the resistance of fluids and the like attractive or impulsive forces.

Writings in his main book Principia (1687) cover the three laws of motion. He elaborated his principles through the use of nothing except his intelligence and the power of his analysis. Newton’s 3rd Law (Action and Reaction Principle) states:

For every Action there is an equal and opposite Reaction

Having two bodies A and B - when the former exercises an action on the latter body (B) with an Action F_AB force - then the body B exercises on A an equal and an opposite directed F_BA force called Reaction.

We illustrate this principle in Figure 1…