The Logic Behind the Pitchfork -
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thread: The Logic Behind the Pitchfork

  1. #11
    Member Ranti's Avatar
    42
    I find that when price breaks a pitchfork line and finds support/resistance shortly afterward, it is usually the end result of any of these: slipping parallel, secondary pitchfork, trendline, preceding support/resistance. This can account for any support/resistance found in any structure.

    From the picture below, I used an alternate P0 (pivot A) for your grim pitchfork.

    By the way, don't expect the one-bounce-reversal to happen when price reaches on a line. The lines serve the role of giving the place where price has a probability to run out of directional energy (i.e. lose momentum) upon hitting them. If there is a time to pay attention to how price will react, it is when it reaches these lines.

  2. #12
    Member Ranti's Avatar
    42
    Starting with a pitchfork and a warning line, you may produce a 3D-pitchfork with the addition of a few more lines.


  3. #13
    Member Ranti's Avatar
    42
    HOURLY USD/CHF

  4. #14
    Member Ranti's Avatar
    42
    Still another perspective:

  5. #15
    Member Ranti's Avatar
    42
    Impact:

  6. #16
    Junior Member pupkalberpk's Avatar
    7
    Result:
    Hey Kapital,

    Like what you did Using the rectangle on Your fork. Nice .

    FX4

  7. #17
    Junior Member edu_tintin's Avatar
    1
    Hi All,

    This is just my 2 cents. I didn't look through each thread if someone mentioned this stage, I apologize for the reduny. Though everything said may be legitimate, it may be simpler to think about the pitchfork in terms of simple economics and statistics. A properly drawn fork basically takes two extreme values (a swing top and a swing low). It's anchored with a swing stage in between people, which serves as the point of central tendency. The trendlines extend the line and the extreme values serves as a central trend. When prices near a top trendline, it may be considered overbought, a statistically extreme value (sell signal) and vice versa for the lower line. The line may serve as value. If you play forks a lot, you will see that price does often abide by the fork for a while and it appears to gravitate across the line. Why does this work? Not certain, but I feel it has to do with the fork being a good illuion of this supply and demand forces at work on the market or perhaps it is all plogical? But wait, when you get down to it, that is what supply and demand is. . .right?
    It appears to me a sensible explanation for the general role of the fork, but I cannot explain the occurrence of switchbacks, quartiles, fibo numbers along with other phenomena that occur. . .perhaps could be explained by Newton, other plogical factors, natural law, or even a little bit of everything or entirely random
    Anyways, just my 2 cents, hope this may help someone who likes pitchforks, but can not rationalize them. That was me some time ago, I always had a fascination for the fork, but needed my own rationalization to utilize it...

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