Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

sonny69

Andrews Pitchfork In Forex?

Recommended Posts

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.

Share this post


Link to post
Share on other sites

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!

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites
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.

Share this post


Link to post
Share on other sites
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

gu4h_071113.thumb.gif.dd88d14285c7c17501753d7d406e6f0c.gif

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites
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

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • AMZN Amazon stock, nice buying at the 187.26 triple+ support area at https://stockconsultant.com/?AMZN
    • DELL Dell Technologies stock, good day moving higher off the 90.99 double support area, from Stocks to Watch at https://stockconsultant.com/?DELL
    • MCK Mckesson stock, nice trend and continuation breakout at https://stockconsultant.com/?MCK
    • lmfx just officially launched their own LMGX token, Im planning to grab a couple of hundred and maybe have the option to stake them. 
    • Date: 2nd April 2025.   Market on Edge: Tariff Announcement and Volatility Ahead!   The US economic and employment data continues to deteriorate with the job vacancies figures dropping to a 5-month low. In addition to this, the IMS Manufacturing PMI also fell below expectations. However, both the US Dollar and Gold declined simultaneously following the release of the two figures, an uncommon occurrence in the market. Traders expect a key factor to be today’s ‘liberation day’ where the US will impose tariffs on imports. USDJPY - Traders Await Tariff Confirmation! Traders looking to determine how the USDJPY will look today will find it difficult to determine until the US confirms its tariff plan. Today is the day when Trump previously stated he would finalize and announce his tariff plan. The administration has not yet released the policy, but investors expect it to be the most expansionary in a century. President Trump is due to speak at 20:00 GMT. On HFM's Calendar the speech is stated as "US Liberation Day Tariff Announcement". Currently, analysts are expecting Trump’s Tariff Plan to impose tariffs on the EU, chips and pharmaceuticals later today as well as reciprocal tariffs. Economists have a good idea of how these tariffs may take effect, but reciprocal tariffs are still unspecified. In addition to this, 25% tariffs on the car industry will start tomorrow. The tariffs on the foreign cars industry are a factor which will particularly impact Japan. Although, traders should note that this is what is expected and is not yet finalised. Last week, President Trump stated that he would implement retaliatory tariffs but allow exemptions for certain US trade partners. Treasury Secretary Mr Bessent and National Economic Council Director Mr Hassett suggested that the restrictions would primarily target 15 countries responsible for the bulk of the US trade deficit. However, yesterday, Trump contradicted these statements, asserting that additional duties would be imposed on any country that has implemented similar measures against US products. The day’s volatility will depend on which route the US administration takes. The harshness of the policy will influence both the Japanese Yen as well as the US Dollar.   USDJPY 5-Minute Chart   US Economic and Employment Data The JOLT Job Vacancies figure fell below expectations and is lower than the previous month’s figure. The JOLT Job Vacancies read 7.57 million whereas the average of the past 6 months is 7.78 million. The ISM Manufacturing Index also fell below the key level of 50.00 and was 5 points lower than what analysts were expecting. The data is negative for the US Dollar, particularly as the latest release applies more pressure on the Federal Reserve to cut interest rates. However, this is unlikely to happen if the trade policy ignites higher and stickier inflation. In the Bank of Japan’s Governor's latest speech, Mr Ueda said that the tariffs are likely to trigger higher inflation. USDJPY Technical Analysis Currently, the Japanese Yen Index is the worst performing of the day while the US Dollar Index is more or less unchanged. However, this is something traders will continue to monitor as the EU session starts. In the 2-hour timeframe, the USDJPY is trading at the neutral level below the 75-bar EMA and 100-bar SMA. The RSI and MACD is also at the neutral level meaning traders should be open to price movements in either direction. On the smaller timeframes, such as the 5-minute timeframe, there is a slight bias towards a bullish outcome. However, this is only likely if the latest bearish swing does not drop below the 200-Bar SMA.     The key resistant level can be seen at 150.262 and the support level at 149.115. Breakout levels are at 149.988 and 149.674. Key Takeaway Points: Job vacancies hit a five-month low, and the ISM Manufacturing PMI missed expectations, adding pressure on the Federal Reserve regarding interest rate decisions. Traders await confirmation on Trump’s tariff policy, which is expected to impact the EU, chips, pharmaceuticals, and foreign car industries. The severity of the tariffs will influence both the JPY and the USD, with traders waiting for final policy details. The Japanese Yen Index is the worst index of the day while the US Dollar Index is unchanged. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.