Fun With PitchForks

[hwsteele]

Here is an updated hour chart for the EUR-USD.
Notice that we did have a higher swing.
The new candles are on the chart but the forks have not been moved at this point.
Notice the lines that price found support at.

 

[hwsteele]

This chart has the updated forks on it.
Notice that price is reacting to the sub fork very well at this point.
Also notice that price is almost back down to the median line of the main fork.
I like to draw newer main forks when price makes it to the median line of the main fork.

 

[hwsteele]

This is the same up to date hour chart with a new, more up to date, set of forks on it.
Notice that the 5th swing does not make it to 88% and as such this is an invalid 5th.
Price does head up and break through the median line of the sub-fork before it stops at the top channel line. Price then trades back to the sub-fork median line and then moves up through to the median line of the main-fork.
After this price trades back down to make a new low which IS a valid 5th swing.

 

[hwsteele]

This is the same price chart with the new 5Th and 4Th.

 

[megamuel]

Hi hwsteele,

Thanks for this thread. I looked at Pitchforks a while back and although definitely seeing something in them, I was unable to trade them successfully. For a while I've been looking for some methods of using them with no joy so I'm glad you've started this thread. Was just wondering if you have the facility to make videos? I struggle to put the text and charts together sometimes and find it much easier to understand when being show in real time.... But I understand this may be too much to ask! Anyway, thanks again for this thread.

Sam.

 

[hwsteele]

Now here we have the same price chart again, but this time the main-fork and sub-fork have been updated.

 

[hwsteele]

Hi hwsteele,

Thanks for this thread. I looked at Pitchforks a while back and although definitely seeing something in them, I was unable to trade them successfully. For a while I've been looking for some methods of using them with no joy so I'm glad you've started this thread. Was just wondering if you have the facility to make videos? I struggle to put the text and charts together sometimes and find it much easier to understand when being show in real time.... But I understand this may be too much to ask! Anyway, thanks again for this thread.

Sam.

Well it just so happens that I do have what I need to make videos.
I will whip one up here in a little bit that I hope helps.

 

[megamuel]

Awesome. Cheers Steeley! Look forward to it!

Sam.

 

[hwsteele]

Here is the first video...

 

[hwsteele]

The next video will be recorded and uploaded tomorrow.
I will post a couple of updated charts later...

 

[hwsteele]

Here is an up to date hourly chart.
See what would have happened if you went long at the close of the first candle to make it past 88%?
In this case you would have landed a nice trade. It made it almost all the way to the top channel line of the main fork...

 

[hwsteele]

Now take a look at this chart.
This is the same chart as before but with a second sub-fork.
And you guessed right it is for the top channel of the main-fork.
I grayed out the bottom sub-fork to make the top one easier to see but I left it on the chart.
Notice how the top sub-fork holds the price very nicely.
Also notice how the second sub-fork is drawn...

The first swing is the same as the first swing of the main-fork.
The second swing is the same as swing four of the main-fork.
The third and last swing is right on the median line of the main-fork where it crosses the price between swings 4 and 5 of the main-fork.

 

[wackypete2]

all those forks are making me hungry

Peter

 

[megamuel]

Good stuff. Looking forward to next vid!

Sam.

 

[hwsteele]

Here we have the updated chart.
The circles on the chart show how well the main and sub-forks give support and resistance and why I use sub-forks instead of just sub-dividing the main fork into quarters.

 

[hwsteele]

Here is the same chart but with an updated main-fork on it.

 

[hwsteele]

Ok, we had a new 5th so I drew in a newer main-fork.
The reason the 5th swing is not on the highest candle is because that candle is the current candle and not closed yet.

Even though the current 5th swing is 1 pip lower than 5th was on the old main-fork the current candle that's not closed yet has made a higher high so I know for sure that this current 5th swing is correct.
And that's why I drew a new main-fork.
How I use the forks to enter a trade will be covered in the third video.
The second one will explain the rules for setting up the forks.

 

[megamuel]

Steele,

You know you like price to come back to the 88 for the 5th swing. Is there a maximum level where you would say the 5th swing has gone too far?

Sam.

 

[hwsteele]

Steele,

You know you like price to come back to the 88 for the 5th swing. Is there a maximum level where you would say the 5th swing has gone too far?

Sam.

That's a good question!
The answer comes from the swings as they form.
While you can keep using the next swing and the next to be the "current 5Th" as long as the price never goes past the 4Th swing, I find it better to draw a new main-fork if there is a nice sized swing from the current 5th.

I bet that confused you even more right?

So to answer your question out right...No I don't have a pre-set level like the 88%.
If you look at the last couple of charts that I loaded you will see that I drew a new main-fork because price moved down and made a nice sized swing from the old 5th.

 

[hwsteele]

Here is the second video...