Pitchfork Goldmine!

The purpose of my thread is to share my analysis and trades with the forum. I generally chart EurUsd on the 1-hour time-frame. How I see the market may help some; how you see the market may help me. We'll see how it goes. Perhaps it is a good idea to mention that I use Pitchforks (for swing and position trades) and may include lagging indicators and Fibs, primarily for my scalping/entry system.

If you are new to Pitchforks, this may be a good place to get your feet wet.

Take care,

FX4Newbies

P.S. Some of the traders who post here are by no means Newbies. All are welcome .

EDIT: As of May 8, 2011, I will be incorporating more of a journal style to the format and flow. Charts may be posted for pairs other than Eur-Usd that I follow, as well as XAU-USD and XAG-USD. These additional charts would generally be for actual trades made, and to help traders who are new to forks understand what could be a tell: information about price action to signify a possible trade setup/entry. Hope it will be an eye-opener.

Hello again traders,

I have attached a simple chart to help traders get started on the Pitchfork. I will be posting charts, with some notes to help you see your way as you begin. The charts will show you how I use Pitchforks to "track" price action. I think you will be amazed!

Here goes...

Hello traders,

Will start with my charts from the beginning of June, so you can follow the sequence and get an idea of how I will normally proceed. This journey is somewhat new, so adjustments can be made along the way.

Eur-Usd in the middle of the red and green forks. Good place to wait though there is definitely downward pressure. Not yet making higher highs...still in the fight. T/F 1Hour.

Your thoughts and comments will be appreciated.

Well, what do you know. Price went up for a bit then turned to the green MLH. Finding some support there. Local fork (smaller internal fork) showing trade opportunity to ML. Once price begins to show some confirmation of the support at green MLH, it is time to look for the entry. We'll see if the green MLH support level holds.

Continuing from previous chart...just following price to show us how/where to look for the entry. Remember, your goal in trading is to look for LOW-RISK ENTRIES and HIGH PROBABILITY SET-UPS. The lowest risk entries are usually found near Support and Resistance lines.

Did you ask about entries and stops?...please see attached chart. In this example, our stop would be placed below the low of the previous red candle...around 1.2165 i.e. below support. The price and time are built in to the way price interacts with the pitchfork tool.

Enjoy and take care.

Trader was stopped out of one trade and not the other...one had a cash stop, the other no stop...have had problems. Here was my reply:

What you have experienced is typical in the market. However, you have to strategically place your stops. Using Cash Stops...just selecting a number of pips from your entry, may not be the best way. You need to hide your stops behind the buyers and sellers in the market. How do you locate them? One way for sure is to observe where support (where there are pending buying orders) and resistance (where there are pending selling orders) areas are. Your stops should be placed on the other side of these areas. The idea is to use these orders as a buffer that would shield you from any market action to take you out. For example, if you were selling with resistance overhead, your stop should go above the resistance level.

Sometimes, if I use a larger stop that is hidden behind a support or resistance area, I place an alarmed line maybe 15 to 20 pips or so from my entry to alert me if the market is moving in the opposite direction. That way I can re-evaluate my setup and entry.

And yes, they do hunt the stops...that is money for them.

Hope that helps.

Hello again traders,

Pay special attention to how price looked for Support on the green fork before trying to shoot higher. It works like a bus stop with designated areas for pick up along the way. Remember, entering at a Support area that has been tested is generally a low-risk entry.

Any comments?

Just a snapshot before the news. Pitchforks here will teach you something interesting.

Chart is attached. Will post again before London session. Powerful huh?!

A look at the EU before the session began.

...even the 5-min.

Hello traders,

Chart attached shows that our target was hit on the EudUsd. Take a look. http://www.trade2win.com/boards/imag...icon_smile.gif

Closed with 116 pips on a similar move with AudUsd. See next chart.

I decided to put the chart in a separate window. Previously, I tried using smaller files, but then realized not so great an idea.

This one shows The AudUsd and has some interesting chart notes.

FYI: 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).

On we go...

Hello traders,

Just trying to get some ideas on paper. It is a good idea to think through some what-if scenarios. Don't just react to price. Know in your mind...if price does this then I will plan to do this.

Will watch to see what happens, especially after the G20 weekend. In no rush. Would like to make an informed decision

Left a few landmarks (labeled in light gray) so we can keep track...

Hello again traders,

Hope you had a wonderful weekend.

Well, the market is open. Price dropped to test the lower parallel line of the red fork. It is now in a primarily sideways mode for those who scalp.

We'll see how the Asian session performs in preparation for the London session.

Take care and follow your rules...me too!

Price did not make it to the ML on green fork. Also broke lower MLH. Finding support at WL2. In the target zone though.

...or maybe I was late http://www.trade2win.com/boards/imag...icon_smile.gif ? Price fell close to the area I marked...close enough for me

Where to next? P5 or Resistance?

Seems like this area could show us something that will birth the next move. We wait for confirmation as the tug-of-war heats up.

Observe where price is in relation to the Pitchfork lines (or tines).