Andrews Pitchfork In Forex?

[sonny69 10]

Hi this is my first post on this forum so I hope this is the right place,I have searched the forum for Andrews Pitchfork and come up with nothing?

 

Currently I am trading EUR/USD,GBP/USD and EUR/GBP,I am learning to just use price with trend lines and support and resistence levels but have recently discovered Andrews Pitchfork lines and have started using these.

 

Basicaly I was interested to know if anyone else uses these trading forex as most references you find tend to be related to futures or longer term trading.

 

My intial reaction to using them is positive as they do tend to give good short term profit targets and entry points but I am quite sceptical about using them as its easy to go off on a tangent trying something new and to later find out you have wasted allot of time trying to use something no one else uses.

 

 

Any advice or experiences using them would be really appreciated.

[waveslider 10]

I find Andrews method most helpful when the market is "swinging" rather than in a strong trend. I don't trade forex ( I do trade currency futures), but from what I've seen, the pairs trend pretty strongly. You might be better off using trendlines and channels.

 

The other point you mentioned about going off on a tangent is applicable to any method, and if you are suseptible to distraction (like me), this is where developing your discipline comes in.

 

Successful traders often use only one or 2 methods, and may wait around for days or more for that method to flash an opportunity.

 

Andrews is a worthy method, it is a good illustration of market symmetry.

GOOD luck!

[walterw 10]

In the past I did study the entire aproach... liked the logic behind... never used due to the subjectivity of selecting "wich" pivots to draw this lines... I think that with screentime this pivots selections may become easy, as anything in life... my two cents, cheers Walter.

[benssol 10]

the idea of the PF is that the price tend to walk in sine wave around the median line, so the price aiming to rest on the median line 80% of the time

 

Pivots selection must be on the last settled swing, it's not virtual

 

and PF can be used as long as they contain the price or their warning lines act as S/R

 

if you need anything else just tell

[walterw 10]

the idea of the PF is that the price tend to walk in sine wave around the median line, so the price aiming to rest on the median line 80% of the time

 

Pivots selection must be on the last settled swing, it's not virtual

 

and PF can be used as long as they contain the price or their warning lines act as S/R

 

if you need anything else just tell

 

 

Nice Benssol ¡¡...and welcome aboard.. would be interesting if we could expand the topic right on this thread...

 

As I mentioned before, when I see a chart and I want to get started, the very first question would be, wich pivots should I correctly choose to draw the pitchfork... could you give us some graphic examples on this topic ? so we can learn how this is correctly done... would be really great ¡¡ thanks Walter.

[benssol 10]

Nice Benssol ¡¡...and welcome aboard.. would be interesting if we could expand the topic right on this thread...

 

As I mentioned before, when I see a chart and I want to get started, the very first question would be, wich pivots should I correctly choose to draw the pitchfork... could you give us some graphic examples on this topic ? so we can learn how this is correctly done... would be really great ¡¡ thanks Walter.

 

 

thanks alot walter

 

you've experience with the tool

 

so as you know

 

to select the 3 points of the PF you can select it with your eyes on the last completed swing

or to practice first you can use the ZigZag indicator

 

after drawing it setting the entries and targets is easily

the idea in the parallel lines

 

upper and median and lowe lines

 

any confluence with those lines and S/R level is important

any confluent with those lines and another PF lines also is important

 

the median line is the most important, it is the pivot that the prices tend to rest at it and play around it 80% of the time

 

 

in case of a single PF

when price resting @ the median line its undecesion case

when it breaks it to the lower the first target is the lower median line

and the same if it breaks above it

 

also you can add a warning outside lines to the PF

and they are a parrallel lines to the upper and lower PF median lines

 

those warning lines serving the action/reaction principle

 

so if the prices breaks the PF completetly it's target is the first warning line

 

every line breaking usually require a return for testing

 

in the attached chart GU 4H

I attached the zigzag to make it clear

you can see the whole picture

the PF in bold blue and the warning lines are dotted around the PF

 

-look at the prices at the median line

-look at the first test for the upper median line at 28Sep and the return of the price to the median line

-look at the first failure attempt to test the lower line and the retrun of the price to the median line in 22Oct

- then see the break of the PF completely from the upside then the resistance at the first warning line then the price return to the eternal median line and it's bounce from this area

 

so this pitchfork deserve to stay on the chart even if another one appear

 

I hope all this post be helpful to anyone

 

also it will be great if you share your experience Walter

 

 

thanks again

[walterw 10]

Using the zigzag for choosing pivots its a good idea... I remember, when I did some experimets I used some fractals as well...

 

I see you have this external lines, how do you get them plotted ?...

 

nice inputs Benssol... cheers Walter.

[benssol 10]

Using the zigzag for choosing pivots its a good idea... I remember, when I did some experimets I used some fractals as well...

 

I see you have this external lines, how do you get them plotted ?...

 

nice inputs Benssol... cheers Walter.

 

thanks Walter

 

MT dont have the complete pitchfork as other platforms

 

so i use 2 fib channels and set it's levell to 1,2,3, ... then Plot its bands on the median line of the PF

[BlowFish 10]

Check out medianline.com Tim Morge trades currencies using forks and manages a fund using them from what I understand.

[sonny69 10]

Thanks for all the response to this thread, my experiences so far are quite encouraging all though I have found that you do need quite visible points to plot from.

 

Using it yesterday on eur/usd was not that helpful as basically the pair were stuck in a range with little direction,trading off the pivot point and R1 was the simplest approach.

 

I was also using it on Dec light crude yesterday to experiment and it did very accuratly forecast the break and sell off in the afternoon,the price touching the median line and slightly rebounding before carrying on to the lower line.

 

As I am still very much getting to grips with using this I am going to refrain from posting anything technical about pitchforks just explain how I am using it as there are much more experienced people on here to explain its correct use,however I will keep posting updates to show my progress with it.

 

I am currently plotting off hourly charts then 15m and 1m the idea being to help trade an established trend and identify and trade micro trends developing within the larger timeframe,that is the theroy anyway! Trading off the 1m charts is very much a scalping excersise as the trends dont last long and I am running tight stops with these.