Pitchfork Goldmine!

Enjoy.

I have some questions.

What do you look for in price action before making a trade? When price hits the median line, when do you decide to buy or sell? Same with when price hits the upper and lower lines....

What I try to look at first is Price Action/Market Structure. Is price making higher highs/higher lows etc. Is price taking out swing highs or swing lows? Sometimes I miss that step and get caught up with price at a fork line. Oops! .

I look at S/R...horizontal price areas.

At the parallels, I look for "confirmed" support or resistance...by price showing some tests/touches along those lines.

I also keep an eye for the Andrews pivot count.

I look at multiple T/Fs...which would give me some idea of where the flow is likely to go: H4, H1, M15. I look at the longer ones to get an idea of where the market could be heading.

Most importantly...I pay attention to the "life in/momentum of" the candle as it is unfolding....that you cannot see from a chart after the fact.

I generally try not to enter a trade at an ML unless I see some tell that looks very credible. An ML is a good place to take profits. I try to exit just shy of the actual ML if I use a Take Profit to ensure that the order has the best chance of being filled.

Hope that helps. These are not in any particular order or sequence of application, though the first one is very critical. I just jotted them down as they came to mind. Maybe this week I would be able to enter and exit some trades so you can see some of this in action.

Take care,

FX4

P.S. Using an additional tool like a Fib or something could help by giving confirmation.

This could mean more changes for US traders in July and beyond.

http://www.zerohedge.com/article/tra...inning-july-15

Check with your broker for more details and confirmations.

FX4

On your blog I saw your week ending in 1hr pitchforks. I just wanted to post my daily chart of eu. Are these pitchforks drawn properly? The way I learnt it is that what we are looking for is the path of price.

http://i.imgur.com/hKAFz.png

Green/blue fork looks good. Try moving Pivot 2 to the top of the higher high...the pinbar looking candle. Pivot 3 can go to the low of the candle just before where it is now.

Your orange fork...try moving Pivot 1 up to the top of that swing and Pivot 3 can be moved as well...try either top and see what the fork tells you.

Basically you want to draw the fork first in the direction of the trend of the TF you are working with...then see what it says to you about price action.

Hope the forks on the blog are helping.

Take care,

FX4

P.S. By the way, notice that price did take out a swing low, so it may not be a bad idea to draw in a downward sloping fork.

Hello again Moneydeep,

The black line shows an area of support (buyers) that was taken out....hence my statement about seeing what a downward fork would give. Forks that are drawn technically correctly, but do not describe current price action are really just TA Artwork. I have to catch myself sometimes and remind myself to pay attention to price action and market structure.

FX4

P.S. Time now for me to catch some zzzzs...already way past my bedtime.

so you trade pitchforks only? Or do you combine it with other techniques? Because to find a good working fork you have to throw away quite a few others.

Got in long here.

http://img146.imageshack.us/img146/2686/capturexhl.png

Looks like you've got some +pips now

FX4

So you trade pitchforks only? It is my main method of analysis. I liken TA to driving a car...we use the rearview mirrors to check the overall landscape, but when changing lanes, we use side mirrors if there is a need to be sure of the "when" so we don't get broad-sided. Side mirrors are like the Fibs etc.

On finding the best fork...once you get a handle on what the forks are designed to do, you will begin to find the swings that generate the next move and by default, the pivots associated with them.

Keep plugging away,

FX4

What's your take on the price failing to reach the median line? Would you not hold a long position very long?

Falling to hit the median line? Do you mean the median line parallel? What is your analysis telling you?

FX4

P.S. See now...failing to the the median line.

I mean the blue median line now that we are hitting higher highs and higher lows.

I presume you are referring to your chart in Post 1770?

FX4

Yes

Blue...that got me. Think price is hitting the white one...try drawing an SH...a sliding parallel off the candle that pierced the ML and see what price does with it. The fact that you are asking is a sign you have doubts. There is some obvious resistance that price would have to clear to go higher. Maybe you could look at a longer T/F to see what's happening there.

Well, let's see what I find to get in to this morning.

FX4

greetings everyone,

eur long 4207, exit 4240...shall monitor closely next 1.5 hours for further longs ... at around the same level ...

OK, entered at 4223 and t/p SET to 4330...

shall consider further longs if any later...