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The Journey with EurUsd
Hello again,
I posted a chart earlier which I thought may be much for someone to follow who has not traded with pitchforks. I will therefore post in sequence the charts that led up to the one you may have seen.
Please ask if you have any questions. Here we go.
Pitchfork?
Is the pitchfork plotted manually or you use an indicator dat automatically plots it? Aside d pix,explain in detail how the system works e.g does pitchfork redraws,why buy or sell.Thanks in advance.
Hi Poruchik,
Seems like you tried drawing a few forks. Great! When you draw the pitchfork, you need to select three alternating pivots...high-low-high or low-high-low, progressing forward in time. Then you apply the pitchfork to those points in the alternating sequence described. Different platforms have you draw them differently...some have you start at the first pivot then second and so on. For some, you draw what is called the line of force (Pivots 2 to 3), then they have you place Pivot 1, called the Anchor Pivot.
Take a closer look at my charts and you will see how the pivots are selected. They must be alternating.
Let me know if that helps. This is only the beginning with Pitchforks.
FX4Newbies
Hi Wolero7,
The Pitchfork is a drawing tool like a trendline, not an indicator. I do not know of a program that would automatically draw a fork for you, as the trader generally selects the alternating pivots to be used. Once the fork is drawn, there are indicators etc. that would attach other related lines of analysis associated with the Pitchfork. Each fork is drawn by the trader, as he/she applies it to the chart in an attempt to determine the best take on price action. The goal is for the trader to get a snapshot of the market that is in sync with price behavior. From that snapshot, the trader makes decisions about how to proceed.
Really, I am not trying to give picks here...just showing my view of the market using my method(s) of analysis. Hopefully traders can benefit from what I share and incorporate it in their approach using their style and method of entry. The Pitchfork is based on Newton's law...to every action there is an equal and opposite reaction. Price movement is actually like a vector...with magnitude and direction. That means that the laws of Physics apply.
The middle line or ML is generally the place where price is drawn toward...a target so to speak. The outer lines are places where price tends to run out of energy. There is much more to these simple lines, but once you understand them, they are very, very powerful.
Please note that the 80% probability of price hitting the ML applies when the pivots selected are the immediately alternating pivots prior to the current price action. I choose to mention this here, just in case someone draws a fork with pivots miles away and does not understand how to handle price failures (the other 20% of the time that price may fail to reach the ML).
Does that help?
FX4Newbies
Is the pitchfork plotted manually or you use an indicator dat automatically plots it? Aside d pix,explain in detail how the system works e.g does pitchfork redraws,why buy or sell.Thanks in advance.
Almost there...attached is my chart during the Asian session...watching to see how things set up.
Thanks for bringing this.
Pichfork is a very good tool, but requires a lot of practice and expertise. Also, perception of trader is important I think, and there is where problems begins. Not very mechanical.
Pre-Market Thoughts
Hello traders,
Just trying to get an idea on paper. Will watch to see what happens, especially after the G20 weekend. In no rush. Would like to make an informed decision. Once the market gets going, hopefully we can make a little more sense of it
.
Left a few landmarks (labeled in light gray) so we can keep track...
Take care,
Hi fxnewbie,
Glad to be able to provide the info.
You are very right. The Pitchfork is an excellent tool that works on any time-frame and any market. It is not difficult to learn though, but as with anything, practice and training are required. Perception of the trader is what is behind everything, even when using traditional indicators. This is why we have bulls and bears trading and looking at the same charts
. Have you looked into learning the Pitchfork? How long have you been trading?
FX4Newbies
Thanks for bringing this. Pichfork is a very good tool, but requires a lot of practice and expertise. Also, perception of trader is important I think, and there is where problems begins. Not very mechanical.
Hi fxnewbie,
Glad to be able to provide the info.
You are very right. The Pitchfork is an excellent tool that works on any time-frame and any market. It is not difficult to learn though, but as with anything, practice and training are required. Perception of the trader is what is behind everything, even when using traditional indicators. This is why we have bulls and bears trading and looking at the same charts
. Have you looked into learning the Pitchfork? How long have you been trading?
FX4NewbiesI have some years trading now.
In my begining, one of my first tools where Pichfork, together with trendlines. Not very successful with I must say, maybe because I was very raw trader at that time, trying to find my holly grail and get rich fast. Some success I archived, anyway. At least, I did not blow my account.
But I remember that one of my biggest problems was to recognize the structure of price in order to draw my pichfork correctly. That led me to feel very unsafe (and afraid) about the signals, with the consecuences in my trading.
I recognize now that it was lack of patience, knowledge and training. That is why I am very interested by the way you do it, specially if you will draw it in live charts
Thanks again. Waiting to learn more.