alright ive done some research on these the past few days and came up with some observations
- pitchforks are very good at determining trends. find 3 fairly significant points and draw a pitchfork and it can help u with direction
- now the common stereotype ive noticed is that people think price will respect pitchforks to the pip. my personal observations have showed otherwise. alot of time price will break the upper or lower lines and overshoot only to come back later inside.
- pitchforks arent perfect tools just like anything else most of us use. but they are a tool that helps with decisions so we should treat them that way.
- when price overshoots either lines, we dont know if the trend has gotten stronger or changed. we dont know if price will go back inside the pitchfork or stay outside. because of that i found that a trigger is needed. it could be an indicator or price action or any tools that you guys use for helping with decisions.
here is an example of gbpusd 1h
i didnt trade based on this example but i actually followed it through till the close.
as u can see i drew my fork.
at the first red rectangle, we see price was riding the lower line and at some point was seen under the lower line with no significant action. i used cci 50 for a trigger. at this point its time to really watch coz it could either go lower and break and keep goin down or it could go lower then go back so who knows. i waited then price started to go up from there and the cci crossed its 0 line. a good indication of positive/upward movement. that would be an example of an entry.
its safe to exit at the median line but since it was a upward sloping pitchfork, then it wouldnt be a bad idea to hold the position for a while. but we cant predict the future and the median line would have been a nice target.
price moves around inside the pitchfork under the median line which in my opinion is a negative bias since the fork was upsloping but thats just an observation and not somethin to really care for.
hours later price dips under the lower line. a fairly good indication of a breakdown. here at this stage i was like wtf! so its time to see what the cci is doing. its near 0 but still above it. we get a pinbar.
when the price is under the lower line its a 50 50 chance. but with the pinbar, the chances of price going up are better. if im not mistaken, the cci did a zero line rejection which would mean continuation of the trend. for someone that is not too sure even with good upward indication, they could wait till price is back inside the pitchfork and then take a position.
hope u guys liked my lesson in pitchforks. i mean shit im very new with them but if u treat em like a not perfect tools like the other stuff and study them they can help clear up any doubts u got.
i expect price to go back to the median line and maybe bounce there and keep going up if not then itl go down to the lower line and that would be a time to watch.
- pitchforks are very good at determining trends. find 3 fairly significant points and draw a pitchfork and it can help u with direction
- now the common stereotype ive noticed is that people think price will respect pitchforks to the pip. my personal observations have showed otherwise. alot of time price will break the upper or lower lines and overshoot only to come back later inside.
- pitchforks arent perfect tools just like anything else most of us use. but they are a tool that helps with decisions so we should treat them that way.
- when price overshoots either lines, we dont know if the trend has gotten stronger or changed. we dont know if price will go back inside the pitchfork or stay outside. because of that i found that a trigger is needed. it could be an indicator or price action or any tools that you guys use for helping with decisions.
here is an example of gbpusd 1h
i didnt trade based on this example but i actually followed it through till the close.
as u can see i drew my fork.
at the first red rectangle, we see price was riding the lower line and at some point was seen under the lower line with no significant action. i used cci 50 for a trigger. at this point its time to really watch coz it could either go lower and break and keep goin down or it could go lower then go back so who knows. i waited then price started to go up from there and the cci crossed its 0 line. a good indication of positive/upward movement. that would be an example of an entry.
its safe to exit at the median line but since it was a upward sloping pitchfork, then it wouldnt be a bad idea to hold the position for a while. but we cant predict the future and the median line would have been a nice target.
price moves around inside the pitchfork under the median line which in my opinion is a negative bias since the fork was upsloping but thats just an observation and not somethin to really care for.
hours later price dips under the lower line. a fairly good indication of a breakdown. here at this stage i was like wtf! so its time to see what the cci is doing. its near 0 but still above it. we get a pinbar.
when the price is under the lower line its a 50 50 chance. but with the pinbar, the chances of price going up are better. if im not mistaken, the cci did a zero line rejection which would mean continuation of the trend. for someone that is not too sure even with good upward indication, they could wait till price is back inside the pitchfork and then take a position.
hope u guys liked my lesson in pitchforks. i mean shit im very new with them but if u treat em like a not perfect tools like the other stuff and study them they can help clear up any doubts u got.
i expect price to go back to the median line and maybe bounce there and keep going up if not then itl go down to the lower line and that would be a time to watch.
Attached Image
), place more importance on the retracement wave, so lets look at the effect the retracement that ended at C has on the overall wave .... moving pivot A to the junction of the price of C at A's time point:
