Pitchforks in all its glory

I've been into pitchforks in the past unfortunately I couldn't find a way to trade them. But evrey once in a while I see great pitchforks (in hindsight ) and I am simply amazed by the accuracy price respects the pitchfork.

Current EURUSD H4 and GBPUSD H1 charts. Both are the kind of pitchfork setups that the guy from TradingNaked loves it as I remember. For GBPUSD notice how beautiful the price tested the median line, headed back up to the upper ML then plunged right into the bottom ML. Same thing does EURUSD. Simply beautiful. Unfortunately untradable by myself.

Ah yes, median lines, I did use them at one time but didn't quite get the knack of using them live, perhaps I need to have another look. Interesting charts soso, here is something more interesting, looking at your GBP 1H chart, a technique I used to use was combining pitchforks from the different timeframes. Look below, this is the daily chart, where you can see four pitchforks, the weekly, daily, 4H and 1H marked.

http://img131.imageshack.us/img131/8778/chart19ne.gif

First thing to notice is how well price respected the weekly pitchfork levels, almost to the pip, and zoomed in here is the area we are at now, notice the confluence of lines .. are we heading for the top of the daily pitchfork around 1.8570?

http://img265.imageshack.us/img265/9066/chart24jd.gif

There is a lot of merit to pitchforks, but knowing where to draw them, and how to trade them live is a little more tricky.

The challenge to understand and use Andrew's is a worthy one for in the "pitchfork" is time and price. But, you will only see it if you study it. actio et reactio....for every action there is a opposite reaction.

Do not let its simplicity confound you.

xt

Ah, xtsunami, people were talking about you around here

How about laying the basics of price and time for us? Yes I am aware that without one studying for herself would not get to far. But a primer would not hurt right?

Well well, a new fork on GBPUSD. let's see what price will do next.

Akuma, an idea, all 3 pitchforks that I have posted you see that the median line was acting as S/R line BEFORE the fork was actually completed (last pivot chosen). This I think is a major factor into clasyfying a fork as valid or not. What do you think?

Well I know one of the basic concepts taught by the creator himself is that price will reach the median line (middle line) 80% of the time, at which point it will either bounce (as you have noticed), or gap through it. Now in forex due to it's liquidity we don't see gaps too often, so I read that as a dominant candle which we have seen through the median line.

ML tested before fork is formed.

And another one.

Hmmm guess I misinterpreted you, my question is how do you know where the median line is if the third pivot hasn't formed yet? ... or are you suggesting that signs of rejection is advanced warning of where the median line will be in the future?

I was saying that one can qualify a fork as valid if the ML is acting as a S/R trendline before forming of the third pivot. Of course this is just an observation of mine, it may not be true, but that is what I wanted to discuss about.

Well chosing the third pivot is the hard part. I think you can't chose it right from the start because you can't really know when price is forming a new swing high/low. If one would know that then world hunger will be extinguished.

Ok I understand what you mean now ... it seems something worth investigating anyway

This is the first time I have seen pitchforks. It looks like I need to do quite a bit of reading up to fully understand how to use it properly. I like how it takes time into consideration as well. Soso, you always make everything look so easy!

LOL unfortunately!

mmm today must be the day of pitchforks. Check out the current EURJPY, if you ignore the up spike caused by Trichet everything falls into place .

Follow up yesterday post: http://www.forexfactory.com/forexfor...23&postcount=9

USDCAD daily chart.
Man this is not good, I'm starting to obsess again with pitchforks...

Some nice observations there soso, the trick is getting the knack of drawing and trading them live .. something I never quite got the knack of.

Follow up friday's post http://www.forexfactory.com/forexfor...2&postcount=16

The brown pitchfork is still respected. Blue pitchfork vanished so I began looking for another one, thus a new pitchfork in the attached chart, the green one. Pivots 1 and 2 found but at the time I have drawn the pitchfork the 3rd pivot wasn't fully formed. A conflunce of two things made me pick the 3rd pivot: 1) price was right at the top of brown fork and 2) again, this position would have placed the ML as a very nice trendline you see it was tested 2 times already before pivot number 3 was starting to form. In the end it was a nice pick, notice how price used its HPL as resistance. Nevertheless this pitchfork may break quickly but nice pick anyway.

This move I have traded live, stop a few pips above the long white candle. Initial target was the ML of the green fork but I closed when price touched the LPL of the brown fork which is the fork that is still in control.

I feel ya, this is my second attempt with pitchforks, the first attempt 6 months or so before failed completely :. But my overall view of the market has changed a lot so I'll give another try.