USDJPY60min
Being able to clearly identify swings is a primary tenet of trading with forks. Forks are in fact all about the swings and not the lines. In the chart below the red fork is made up of red swings A to B which projected C to D. Note D was exceeded. Since a new high confirms a swing low, blue A to B becomes the first swing in the blue fork or if you will a possible new upward trend. As price moves up the blue fork is adjusted. We now have a clear potential measured move from blue C to D. This idea of using measured moves is also a benefit of using forks and becomes methodical when trading. In this case blue D is around the area where bulls made a decision to make a higher high.
Being able to clearly identify swings is a primary tenet of trading with forks. Forks are in fact all about the swings and not the lines. In the chart below the red fork is made up of red swings A to B which projected C to D. Note D was exceeded. Since a new high confirms a swing low, blue A to B becomes the first swing in the blue fork or if you will a possible new upward trend. As price moves up the blue fork is adjusted. We now have a clear potential measured move from blue C to D. This idea of using measured moves is also a benefit of using forks and becomes methodical when trading. In this case blue D is around the area where bulls made a decision to make a higher high.