(binned per thread starter's request) Forks, Price and Three Minu

11/24: The thread will no longer be limited to 3 min charts.

This thread will attempt to "systematize" trading using a combination of price action (PA) and median lines or Andrew's Pitchforks (we'll refer to them as forks for short).

Why 3 minute charts? Yes they are fast but they offer the opportunity to acquire understanding of how price moves and how forks can help in one's trading plan in a relatively short time. In other words your trading idea will play out rather quickly as compared to waiting for a H4 or daily chart for days and weeks.

I believe PA comes first. PA identifies the buyers and the sellers and ultimately where to buy and sell. Forks help describe the PA and they also help with targets but they are not used to signal trades...at least in this thread.

So as a general system the sequence of analysis will occur as follows:
1. Identify which way price is swinging.
2. Identify buyers and sellers
3. Apply fork.

I start with a zoomed in chart so I can focus on current price action and not worry about what is going on to the left at least initially. I mark the buyers and sellers as shown. I don't make any judgements about what price has done. So far just observing.

This is Fridays' close. So we'll se what happens.

Sorry the chart is a bit messy. Since the open price has washed and rinsed to the upside a couple of times and breaking through buyers is now started to swing to the downside. I've put in a down-sloping modified Schiff fork.
I'll clean this up a bit but the texts are attempts to identify important PA and what happens as price interacts with previous PA.

No forks needed for overnight action. If you study this a bit you'll see how Bull PA gets taken out by Bear PA and where possible entries were. Getting ready for the day job so no time to elaborate.

Current

nice charts

Thanks!

I’ve adjusted the modified schiff fork to encompass the last two same-sized reaction swings (retracements).

I’ve not indicated trade ideas but wondering if anyone can see where there were possible trades?

hard to say in hindsight, but i'm pretty sure i would've taken these. i draw sup/dem a bit differently. however, i'm taking a liking to how you're drawing it. it makes a lot of sense.

Thanks for your answer. The green lines aren’t sup/dem rectangles as is traditionally drawn by sup/dem traders although I know they have a resemblance. I know that all trading is based in supply and demand but let me assure that this thread has nothing to do with sup/dem trading as is shown in other threads at FF. The green lines highlight “stand-out” price action of a bullish nature or bearish nature. Often these are drawn on wide range gap bars, outside bars or pinbars (tails). For the most part they are not meant to be “touch” traded although they can be in the right context. What is important is how price interacts with them.

I plan to go into more detail and if I have time I will comment on your trades. I know they are hindsight. That doesn’t bother me. Also I’m not going to say whether your trades are wrong or right. I will suggest potential trades based on very sound logic. But that’s for later.

do you scan multiple pairs for trades, or do you focus on one/few?

When I’m trading 3 minute charts, which is what I’ve been focusing on lately, I stick to no more than 2 or 3 pairs and usually the majors.
FOREX is a bit limiting given the active trading times. However I’m thinking of getting back into futures and tick charts since NY session is their most active trading time.

Just watching price. No judgements or assumptions.

Very nice charts, and a very nice thread.

Unusual for me, here, to find someone showing charts (and methods) of a construction and display-type I instinctively "recognize and understand"!

Thanks for the thread.

It's amazing once one ditches the indicators and drills down into what actual buyers and sellers are doing. It's in the bars, structures and swings.