Andrews Pitchfork (Median Line)

Bravo Catalin. In the picture your boy is asking about a modified schiff set up. Enjoy.

Nice on the 4hr chart

Alex, that is a nice chart.

Interesting how a slight change of P3 gives much better frequency.

thanks

.

True, Pete. Last week I posted a 30m chart with a P3 that wasn't the low of the swing, so some tweaking was needed to find the best frequency. We have to be on alert when a swing is in progress from P2 to P3 and checking along the way for good hits on the median lines and sub median lines.
You have a good weekend.
http://www.forexfactory.com/showthre...16#post5040616

http://imgf.tw/194910437t.gif

UCAD-H4

This coming week seems to be a crazy week with lots of trade opportunities...there are 25 important events which can start big trends...and we shud draw our forks and wait for the right place to enter ...

here is my view of the pair EURUSD which is for a long while expected to run down...

Yes...it does...it even gives frequency AFTER having found frequency with the initial set of pivots.

Congrats Catalin cute baby! May be he will step in your trading shoes soon.

Regards,
TAQ

AUD-Daily

.

I want to ask a question...

Lets suppose that there is an upwards-sloping pitchfork...
its easy to make orders when the price touches the lower median line...and its also easy to decide the stop loss level...and i think there is nothing complex about it...

(sorry Pete..i used ur pic)

here is the pic to express myself better...where shud i put the SL ? lets suppose that i made my order in the circled area and tried to decide my SL...where shud i put it ? 1,2 or 3 ?

But , how shud we decide the stop loss level if the price passes through the median line in the same upward-sloping pitchfork ? Shud we just make the order and decide the stop loss level according to the avarage daily movement of the pair ? Or shud we place the stop loss just below the previous swing low ? wat shud be our rule while deciding it ?

my chart eur/usd. how you see this currency?

aud/usd

the way i trade, virtually all my stops are cash stops at -30, a little more if spread is greater than 3 (eg. 6 pip spr = SL @ 33)

it seems to work for me because of the types of trades i take, which means it may not work for others if they trade differently to me

i will reduce my stop loss as the trade progresses in my favour, hiding it at market structure

maybe not the answer you are after, but this is how i apply stops and it works for me

Thanks for ur answer...but i guess you use H1 charts when u are trading...so 30 is quite reasonable...i mostly use H4 charts...so if we apply ur mentality to H4 charts then we get a result like 60-70 pips ...hmmm...But i am sure you have smaller stop loss amounts when the price is just above the lower median line...(still assuming that the price moves in an upwards pitchfork)..but also that amount might change in accordance to the pair too...am i wrong ? For example CHF pairs...if we use a fixed number of stop loss pips then 30 might not be good for CHF pairs...

i am really confused about this stop loss thing while trading with the forks...as u said using a fixed number and having ur own style of trading might be a good solution for it...But this median line still causes many questions in my mind ?

1-when can we decide that the price passed through median line ?
2-Can the price reverse back after passing the median line (according to the theory) ?
3-Shud we refresh the pitchforks whenever a new swing happens? or shud we wait until it is not valid anymore because of a breakout ?
4-shud we make SELL orders if the price reaches the upper median line ? Because the theory tells that the price will somehow come back to the median line....am i wrong?)

i have got lots of questions like that :S

i trade these pairs: AU; EA; ECA; EJ; EN; EU; GA; GCH; GJ; GN; GU; NU on H4, M60 and M20

how i use the SL is described in the previous post, nothing changes

re your question list, its difficult to provide black and white answers, each trade is dealt with individually and within the context of market conditions..........for me at least

.

i find examples best, so this is how i traded the GBPUSD60 set-up posted yesterday

1) buy at purple sliding parallel 1.5937, SL -30; SL was reduced and placed behind market structure, as price moved in my favour

2) TP +140 next ML

3) price closed under the sliding parallel, signalling the set-up was failing, so i exit as price comes back to the sliding parallel 1.5963

** not the desired outcome, but i have no choice but to trade the market as it unfolds

.

bother to trade based on median lines until you have drawn, redrawn and observed how they reveal market information. If you have a system that works, take your existing signals, but keep drawing forks all along until they start to sing to you.

Median lines, for me, are as close to the holy grail as you can get. As far a stops go, I play very close to price and to the bone. I am talking ridiculously small stops. Yes even three pips or seven pips. Stops are rolled to be+ early and often. My style is extremely flexible. I have enough grey hairs to remember when round turns were expensive. Those days are over (unless you trade exotics). So getting in and out is nothing to me, in fact the ability to hop in and out with perfect ease is the crux of what makes what I do pay.



It won't take long, but it will require effort on your part to learn the use of median lines. Keep drawing them and make sure every chart has at least one up sloper and one down sloper.

Here is one of three trades taken today.

http://i.imgur.com/XC8RZ.png

I should have drawn another orange support arrow to the one hour chart (left most) pointing out that price was standing upon the maroon color down sloping median line.

To answer two of your questions directly, yes price returns and confirms medians and parallels all the time and these moments are terrific for making entries with as close to zero heat as anyone could ever dream of. And no, you don't take a trade just on a line being touched. You certainly want price action to confirm that the line is a valid representation of an edge.

Look pat yourself on the back, you are on the right thread! Keep pushing!

Best of luck!

SY

.