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Thread: Andrews Pitchfork

  1. #1

    Andrews Pitchfork

    The majority of us have heard of so and a few may have experimented with plotting them. I looked at this indior some time ago but to be very honest I soon moved on because it seemed that trend lines were more usefull. Well I am what you can call a Born again pitchforker I have discovered that when I plot them sensibly they help indie reversal points, highlight trends and they have helped me plot my trend lines more accuratly.

    I dont want to be a pitchfork guru or really any type of expert, actually I might not even be using them because the creator intended all that I want to do is share with anyone who's interested my findings and hopefully debate and discuss how we could make this portion of our trading arsenal.

    Please feel free to join in and take part, if you are an expert I would greatly appreciate your expertise, if im wrong about something tell me. If you know nothing about these but would like to understand what we are you are doing then great, it is going to be good to hear from you even though its just a Hi.

    What I have to re-iterate however is that these are my Personal views and findings, should you want more official (not Certain if thats the word I Am Searching for) advice then either do the Google item or just ask on here and We'll point you in the Ideal direction

    Lyndon

  2. #2
    1 Attachment(s) Hello,

    a new Outlook. Look´s promising to me

  3. #3
    The problem I have always had with forks is that you can always find you to support whatever conviction you've got. Bullish or Bearish.

  4. #4
    Quote Originally Posted by ;
    The issue I've always had with forks is that you could always find one to support whatever conviction you have. Bullish or Bearish.
    couldnt agree more with you DownRiverTrader. IMHO this is just one more tool which can't substitute traditional and basic Support Resistance analyisis but compliment it.

    See attached:

    Using pitchfork technology TM, upward fork is simply invaldated when trendline joining pivots that form fork is broken. In this case it is the line that is blue. Price has retraced to 50% of the move, broken trendline, invalidated pitchfork, and apparently pullsback to examine brokent trendline. This is a textbook case of a pitchfork that has been formed verified and apparently reached its target.

    But we have two scenarios unfolding

    a) go down to 8835 or 50% of 8515 to 9177 is a retracement, and is now to continue up to retest top

    b) move up is finished, and yesterday move upward is nothing but a pullback to 8965 or 38% of 9177 to 8835, and also testing service turned resistance in 8975 shown by horizontal line.

    So in conclusion, yes you are right that one sees what one wants to see. But additionally, if one utilizes further analysis one can assess the situation , and use this fantastic tool for exits and setups. In this case, until we see a pfork that creates and confirms we could trade it.

    Difficulty with this particular tool is that in hindsight it is easy to check when it yhas shaped, but hard to do so in real time.

    Hope chart makes sense.

    Gram

  5. #5
    Quote Originally Posted by ;
    Hi,

    a new Outlook. Look´s assuring for me
    alternative way of seeing things with price patterns, not pitchforks

    descending triangle breaks north and provides a measured movement (into the pip almost....ok 3 pips surpassed )

    now assess price with price patterns to determine whether you get a continuation of the movement upwards and validates your pitchfork. So far 60 minute chart has shaped a new descending triangle. Wait for monday to affirm.

    Gram

  6. #6
    Quote Originally Posted by ;
    so in conclusion, yes you're right that one sees what one wishes to see. But additionally, if one utilizes additional analysis one can assess the situation better, and also use this fantastic tool for exits and setups. In this instance, until we see a pfork that creates and affirms we could exchange it.

    Problem with this tool is that in hindsight it's easy to assess when it's formed, but hard to do so in real time.


    Gram
    Great.

  7. #7
    1 Attachment(s) In another 3o minutes we will see which PF is legitimate.

  8. #8
    Whichever fork winning, even if we put both in trade with great entrance, the end result is still in pips.

  9. #9
    I've been investing in pitchforks for over a year now. I've done some extensive study of the original Andrew's trading procedures and I think the guy was a genious. The major thing you want to know about pitchforks is your center line, or Median Line (ML) as Andrews called them. Andrews concept is that prices are always drawn to the current ML just like a magnet. Draw your pitchforks and you will see, prices are inclined to navigate up and down around the middle line.

    The outer lines are called median line contrasts. Andrews thought that prices transferred in opposites as well as symetry, or in other words, he pitched it to geometry, and so the outler lines will normally hold price action as it is attracted back and on to the ML.

    You can use the ML to judge current price strength. When prices make a new major pivot, you always draw your new fork and 80% of the time, prices must proceed to the new ML. A failure to reach the new ML reveals weakness or strength, depending on which way prices are moving. For example, if prices were moving upward, and turned down, then you draw the new downward fork, and prices must get to the new down ML, but if not, then shows strength and you know that prices are moving higher. Just remember, whenever prices don't achieve a ML, then start moving away from this ML, the trend is losing power. It is not always easy to judge from the the forks alone when the trend will really change, but it is simple to realize that the trend is gaining or losing strength. Andrews asserts that prices will proceed to the new ML 80% of their time. The overall trend may go on for days, weeks or months, but you still need to get a move to the latest ML 80% of the time.

    I'm new to Currency Market, so I have not used pitchforks in this market, but I have used them for both stocks and futures and I am a firm believer in their own validity. I feel that forks will get the job done equally nicely with Currency Market. Andrews himself reveals examples of these working with any type of charting, including charting real weather temperatures. It is bascially fundamentals of math, more specifically geometry. He was a strong believer that for every action, there is an opposite and equal reaction, which was true for market prices as well.

    If anybody is interested, I'll post more, along with some examples as I trade myself.

  10. #10
    Here's a chart of the Aus Dollar. Again, this really is futurescontract, but it should work exactly the same in Foreign Exchange. Notice the long term Median Line at the Dark Blue fork. See how prices are continually drawn to the heart line... it's like a magnet and prices are constantly attracted to it.

    Now notice the dashed blue fork within the large trend. That trend is starting to weaken. See how prices began up towards the middle line or ML, but could not make it? If the trend was strong, prices could have moved right up to the ML, like they did at the previous swing together with the black fork.

    Prices have now fallen out of the black fork and are starting to fall outside of the blue dashed fork too. The trend is becoming weaker and will soon end. Notice how prices can't get back over the ML on the large blue fork. Prices also could not reach the top ML parrallel of their very long term blue fork , another sign of weakenss. Last, notice how prices can't achieve the new ML on the dashed blue fork , which is just another sign of weakness. At the moment, the small red fork is holding prices nicely, and until prices trade outside of that fork, the trend remains down.

    There was also some discussion earlier in the thread about trigger lines. They were yellowish in the previous articles, but mine would be the green dashed line. The principle for these trigger lines would be as follows: Any time prices fail to achieve a ML, you need to buy or sell, instantly after prcies then shut outside of the trigger line.

    There's no doubt that the trend in the AD is weakening and if it has not yet topped, it is going to top shortly. Use the forks to determine the trend, along with the strength of the trend. Use price action and your additional tools to decide whether to buy or sell. While not 100 percent, the cause lines are usually very safe places to buy or sell as well. The only draw back to the cause line is that prices have generally made a nice move already before reaching them, so you would like to get aboard earlier if at all possible.

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