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The One: Price Action and Reaction

  • #2,061
  • Oct 2, 2018 7:36pm Oct 2, 2018 7:36pm
Quoting Winston Reed
{quote} {image}
Thanks for the posting, Winston. I am learning how to draw the lines.
FOR THE HORDE
  • #2,062
  • Oct 3, 2018 6:54am Oct 3, 2018 6:54am
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  • #2,063
  • Oct 3, 2018 7:19am Oct 3, 2018 7:19am
EURUSD 3min. One-line drawn on relative swings.

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  • #2,064
  • Oct 3, 2018 7:41am Oct 3, 2018 7:41am
Sellers still in control

Quoting Winston Reed
EURUSD 3min. One-line drawn on relative swings. {image}
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  • #2,065
  • Oct 3, 2018 8:42am Oct 3, 2018 8:42am
EUR 1h
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #2,066
  • Oct 3, 2018 8:55am Oct 3, 2018 8:55am
EURUSD DAILY
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  • #2,067
  • Oct 3, 2018 9:37am Oct 3, 2018 9:37am
Quoting mbrown
EURUSD DAILY {image}
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  • #2,068
  • Oct 3, 2018 9:40am Oct 3, 2018 9:40am
Quoting Winston Reed
{quote} {image}
Hi Winston, do you draw the lines manually or use the indicator? How do you get the thick bar chart? Thanks.
FOR THE HORDE
  • #2,069
  • Oct 3, 2018 9:42am Oct 3, 2018 9:42am
Quoting eaglestar
EUR 1h {image} {image} {image}
Price is still following this fork. Many times I like to get closer to the current action, so you may see some forks closer to current price.
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The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #2,070
  • Oct 3, 2018 9:47am Oct 3, 2018 9:47am
Quoting eaglestar
{quote} Price is still following this fork. Many times I like to get closer to the current action, so you may see some forks closer to current price. {image}
Many thanks, eaglestar. I am trying to learn the Pitchfork.
Are you going to think about the reversal when the price goes above the upper channel? Thank you.
FOR THE HORDE
  • #2,071
  • Oct 3, 2018 9:52am Oct 3, 2018 9:52am
Quoting JKLee
{quote} Hi Winston, do you draw the lines manually or use the indicator? How do you get the thick bar chart? Thanks.
I use the Oanda online platform which allows for these thicker bars. I draw lines manually.
  • #2,072
  • Oct 3, 2018 9:58am Oct 3, 2018 9:58am
Quoting Winston Reed
{quote} {image}
I always feel like I'm cheating when I use the Modifed Schiff. Are they as reliable as the standard Andrews PF?
  • #2,073
  • Oct 3, 2018 10:09am Oct 3, 2018 10:09am
Quoting Winston Reed
{quote} I use the Oanda online platform which allows for these thicker bars. I draw lines manually.
Thanks. Have a good day.
FOR THE HORDE
  • #2,074
  • Oct 3, 2018 10:11am Oct 3, 2018 10:11am
Quoting mbrown
{quote} I always feel like I'm cheating when I use the Modifed Schiff. Are they as reliable as the standard Andrews PF?
One is not better or worse or more reliable than the other. They both have their purposes.
  • #2,075
  • Oct 3, 2018 10:16am Oct 3, 2018 10:16am
Quoting Winston Reed
{quote} I use median lines after careful analysis of major and minor swings and price action plus a few other things. I decide how and when to include median lines rather than letting a tool tell me. In essence I make a decision to trade within a certain swing and then use median lines to help guide the trade. While median lines can provide direction I really don't trade the lines. Rather I trade very specific price action within the context of the swing I've isolated. So I use the tool rather than the tool using me. If you let the median line tell...
So I guess this could be interpreted as the tool is okay as long as it is used appropriately. For it to be used appropriately it is a good idea to become proficient at drawing Pitchforks manually and have an understanding of market structure, fundamental Pitchfork setups such as the zoom and retest and many more. Without the basic grounding how will you know when to reject a Pitchfork generated by an Indicator. In the absence of that knowledge, it would be no better than letting an indicator tell you how to trade.

Quoting Winston Reed
{quote} One is not better or worse or more reliable than the other. They both have their purposes.
Is the standard Pitchfork your preference and if it doesn't describe price very well then you'd switch to the modified Schiff?
  • #2,076
  • Oct 3, 2018 10:43am Oct 3, 2018 10:43am
Quoting JKLee
{quote} Many thanks, eaglestar. I am trying to learn the Pitchfork. Are you going to think about the reversal when the price goes above the upper channel? Thank you.
Yes if it breaks the upper median line, it would be in a new trend possibly. It is not a channel, it is a median line/andrews pitchfork
The things that we love tell us what we are Thanks Redsword11 and Tim Morge
  • #2,077
  • Oct 3, 2018 11:37am Oct 3, 2018 11:37am
Quoting eaglestar
{quote} Yes if it breaks the upper median line, it would be in a new trend possibly. It is not a channel, it is a median line/andrews pitchfork
Thanks for the correct terminology. I would like to keep watching your postings.
FOR THE HORDE
  • #2,078
  • Oct 3, 2018 4:14pm Oct 3, 2018 4:14pm
Quoting mbrown
{quote} So I guess this could be interpreted as the tool is okay as long as it is used appropriately. For it to be used appropriately it is a good idea to become proficient at drawing Pitchforks manually and have an understanding of market structure, fundamental Pitchfork setups such as the zoom and retest and many more. Without the basic grounding how will you know when to reject a Pitchfork generated by an Indicator. In the absence of that knowledge, it would be no better than letting an indicator tell you how to trade. {quote} Is the standard...
Good question and my answer will seem odd. Forks are often confused with "channels" and much time can be spent trying to find a "fork" that describes price or perhaps more correctly envelopes the current trend on the time frame chosen. Success may be ascribed to those able to do such a thing. I don't want to put down "frequency" but I don't look for frequency or more simply said...price consistently bouncing off one or more of a chosen fork's lines.

I use forks to project. A projection implies some degree of prediction of where price may be going. I use the word "may" strongly. Most assume the projection will occur in line with the direction of the fork. So a down fork means one projects price to go downward and vice a versa for an up fork. But in fact a down-fork can project price upward and an up-fork can project price downward.

Swings are the most basic structure within forks and understanding swings is fundamental to understanding forks.

So finally in answer to your question I don't draw a fork first then decide whether it properly describes price or not. I first analyze price in terms of swings. I analyze the price action in the swings and determine whether proper pivots have formed. The PA is actually how I determine a trade, not the lines. The lines or forks help determine where price is going and where a target might be.

I'm sorry if these seems confusing and when I can I will try to describe how I arrive at a particular chart.
  • #2,079
  • Oct 3, 2018 5:41pm Oct 3, 2018 5:41pm
Quoting Winston Reed
{quote} Good question and my answer will seem odd. Forks are often confused with "channels" and much time can be spent trying to find a "fork" that describes price or perhaps more correctly envelopes the current trend on the time frame chosen. Success may be ascribed to those able to do such a thing. I don't want to put down "frequency" but I don't look for frequency or more simply said...price consistently bouncing off one or more of a chosen fork's lines. I use forks to project. A projection implies some degree of prediction of where price may...

It is a clear explanation. Thank you.
  • #2,080
  • Oct 3, 2018 5:42pm Oct 3, 2018 5:42pm
This is EURUSD H1 chart. It shows a simple normal pitchfork with pivots A, B and C clearly labeled. Pivots tend to be highlighted by outstanding PA (shown by the purple arrows). This fork is actually already completed. This is so because after C price reached the center median line which is one of Andrew's most valuable rules.."price reaches the median line about 80% of the time". This basic yet valuable observation is quite valuable.
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Attachment g

So I thought perhaps we could just follow price from here and see what happens.
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