Pitchfork Goldmine!

Hello again,

Seems like it has been a choppy market overall. Gotta get out the special hunting gear . At times like this, dropping down to a shorter time-frame can help. Charts posted here are still H1, and the EurUsd for newcomers.

Updated the chart. Most recent fork in blue is sideways with a slightly upward bias. Be careful and watchful.

Take your time and pull the trigger only when you see your edge.

Take care,

FX4Newbies

looking at your EU ML sets FxFN, compared to mine, amazing the multitude of different ways one can draw median lines, isnt it!!

and perhaps that's why they arent as popular as squiggly line indicators, drawing them is quite discretionary and trading off them in a consistently successful manner requires a great deal of experience and skill

Hello PeterE,

I find the discretionary quality quite appealing actually, because it allows the trader to make it their own. Being as unique as we are, our perceptions are so different. It allows for customization. But, the rules are the same. So I can look at your chart and know what you are doing.

The bottom line for successful trading is that you have to know what you are doing as a trader. If traders try to run from that by finding "easier" ways, then they will be crippling their development. Pitchfork trading forces you to think, which is where successful trading begins. It forces you to be responsible for your trading. And what is also true, is that the rules and the tool are very simple and straightforward. It is the thinking that may be the hard part .

Thanks for the post and comment. Very thoughtful and insightful.

FX4Newbies

P.S. Those "squiggly line indicators" do have their merit but I like the advantage that I have with Pitchforks.

Well,

Euro looks like it wants to push higher...finding support again. Be watchful...don't know when it will turn. Just trade what you see.

FX4Newbies

Lots of news coming this morning. Market seems to be marking time. Had some sell off...maybe related to Euro news. Will watch to see how price interacts with pitchfork lines to decide on next possible move.

Be careful,

FX4Newbies

I look to see a verifiable "Wave-Pivot" count on H1 then go to lower time frame worked OK!

Hello Wave Trader,

I like the way you use the Pivot Count on H1 then move to your 89 Tick. That is a very good arrangement. Yes, it worked well!

Keep doing it over and over as you have been .

Take care,

FX4Newbies

P.S. Your years of "getting beat up" has paid off!!! All good traders have those.

Hello again,

Just posting a chart showing the outcome of the Eur-Usd. Good news pushed the Dollar upward, causing the pair to fall. If it continues to fall, the green U-MLH may be the target...a long overdue swithchback line.

Take care,

FX4Newbies

Here is a close up of price action with a new, green uptrending "what if" fork added.

For new fork traders, observe how price follows the lines.

Take care,

FX4Newbies

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if only all trades were like this,perhaps THEY COULD BE

Your 2-Hour Pikeliver is just perfect...I would want to think that all trades are. It is just a matter of tuning the fork to the frequency of price. By that I don't mean curve-fitting, but tuning the fork using Andrews' rules. Once that happens, we can make some music. At least we have the tool to do it .

Thanks for posting,

FX4Newbies

In my last chart post, which I have posted here again, did you see the potential chart pattern, a triangle? Did not shade it in on purpose...just noticed price went there, confirming my earlier thoughts.

For all you chart pattern traders, this is how they form...a little of the inside scoop. Somebody is trading using Pitchforks . Hmmm...

Be wary of false breakouts.

FX4Newbies

Hi 4x,

Did you know in Elliott wave patterns a triangle is always the next to last pattern. If it is an ABC pattern, the triangle is always B and if it is a 12345 pattern, the triangle is always 4.

Take Care,
Dave

The expectation, per the Elliott concept, is that price will fall to complete Wave 5, then complete the correction pattern, then fall again forming a new 12345 pattern. We shall see and continue to follow price with pitchforks.

FX4Newbies

Good Morning Traders,

Price fell out of the triangle, hit WL1 off the blue fork and went north, completing Wave/Pivot 5. Another false breakout. Now we understand why they happen.

Updated chart attached.

Take care,

FX4Newbies

Just showing the latest Euro chart before the news. Be careful.

FX4Newbies

Hello traders,

Hope you have had an exciting trading week with all the news . Major US news tomorrow.

Attached is a more current chart prior to the Asian Session. Price still officially in an uptrend but making some lower highs and lower lows.

Just trade what you see.

Take care,

FX4Newbies

hi FX4,could you explain a little about warning lines,and how to use them please

thanks pikeliver

Sure Pikeliver,

I will try to give a very succinct explanation here, without going too much of a teaching mode .

The outer parallel lines on the pitchfork, U-MLH and L-MLH are areas where price is supposed to run out of steam and reverse. Sometimes it may even consolidate there. There are times when price pushes past the parallel lines of the fork, so the Warning Line is used to gauge where the next likely reversal could occur.

I see you have one drawn, but for those who may not know, the distance between the ML and the parallel line on the fork is measured (using a perpendicular line to measure), and a new parallel line is drawn from the fork using that measured distance. Successive lines can be drawn from WL to WL using the same distance.

Once a fork is well tuned to the market, these WLs can continue to be highly effective for several WLs out. They can actually act as Switchbacks, Support and Resistance areas etc.

Take care,

FX4Newbies

P.S. Sent a signal on Eur-Jpy. I know... it is Friday, and I do not normally send them, but the setup looked good .

Take care,

Hello Traders,

This chart (EurUsd H1) shows an illustration of how to apply Warning Lines in response to a question from Pikeliver. My comments are in the post above. I also decided to respond as I use them on my charts here.

Secondly to the right of the chart I have two forks showing possibilities...Non-Farm Payroll to come. Notice where price is...watch how it moves from here in relation to the lines.

Will post weekly wrap-up later today.

Take care and make some pips .

FX4Newbies

Just wanted to mention...

Sent a signal this morning to short Eur-Jpy around 113.50 at 5:29 a.m. EST. Price is now at 113.06 at 7:55 a.m.. If you would like to receive these free signals, you may sign up on the blog.

Take care,

FX4Newbies