Hi Tom:
Besides the use of pitchforks, I rely heavily on price structures; meaning that I am in constant alert of potential patterns in the making to gauge the validity of the fork. Of course the decisive break of the sliding parallels should be treated as a warning of an impending fork failure; that said, in many instances, however, the break of the parallel merely implies a 'newer parallel with greater width' should be re-drawn to take into account that price actions demonstrate greater volatility.
At the on start of defining the three pivotal of the fork; I tend to go through as many ways that are available to me to tacked those three pivots; at least to me, that is an exercise that must be performed to accommodate the constant changes of price postures. As you can imagine, the BEGINNING of any trend, be it up or down, price gyrations tend to be quite violent and accordingly, the three pivotal of the fork has to be constantly adjust in a manner that it can best describe the prices. As mentioned, try to find a fork, or 'an angle' in your words, that can best describe the postures of the markets. That should be the correct fork to use. I hope my explanations didn't confuse you even more. As Tim mentioned once, "You'll just know whether it's a correct fork or not". Take care.
P/S: There are only a few (valid) ways that can tacked the pivots of the forks and there are only few pivots (as being created by the price gyrations) that you can utilize. So, you will definitely be able to find the correct fork.
Have a good one
Jeff
Besides the use of pitchforks, I rely heavily on price structures; meaning that I am in constant alert of potential patterns in the making to gauge the validity of the fork. Of course the decisive break of the sliding parallels should be treated as a warning of an impending fork failure; that said, in many instances, however, the break of the parallel merely implies a 'newer parallel with greater width' should be re-drawn to take into account that price actions demonstrate greater volatility.
At the on start of defining the three pivotal of the fork; I tend to go through as many ways that are available to me to tacked those three pivots; at least to me, that is an exercise that must be performed to accommodate the constant changes of price postures. As you can imagine, the BEGINNING of any trend, be it up or down, price gyrations tend to be quite violent and accordingly, the three pivotal of the fork has to be constantly adjust in a manner that it can best describe the prices. As mentioned, try to find a fork, or 'an angle' in your words, that can best describe the postures of the markets. That should be the correct fork to use. I hope my explanations didn't confuse you even more. As Tim mentioned once, "You'll just know whether it's a correct fork or not". Take care.
P/S: There are only a few (valid) ways that can tacked the pivots of the forks and there are only few pivots (as being created by the price gyrations) that you can utilize. So, you will definitely be able to find the correct fork.
Have a good one
Jeff
Thank you Jeff for your post - as always it is very informative.
I was wondering,when in your opinion pitchfork "fails" and when it is consider "done" ?? I assume breaking of the parallel line finishes the validity of the pitchfork,is that right ?
Moreover,could you explain a little bit more that "vibration" term ? I mean,I understand that it is the PA obedience of the fork but how do you choose the actual angle .. all in all PA obeys many things
~*~You are only one trade away from humility~*~
