Fun With PitchForks

[hwsteele]

Well I just had my only target as the subfork median line on that trade, as I don't know how to split my targets up yet, and its been hit already. This is why I want to trade for a living - I'd have just made more in half an hour of sitting on my ass than I would have made in a week of running around in work serving drunk idiots!!!

OK, so the video will not be happening any time soon. (As in the next day or two or more.)
My free time to be on the computer and the time I have quiet enough where I wont be interrupted by one or more of the five kiddos is not going to happen for a while.

SO

I will just explain the entry that I use when getting into the market with both a main-fork and sub-fork.

Quite simply really I break my trade into two sections of the same amount and set one target for the median line of the sub-fork and the other I ride for as much as I can.
I use the same stop for both.
Once the first target has been hit I adjust my stop loss for the second part of the trade to just above the high of the entry candle or latest swing level if that is a little bit higher or lower then the entry candle. (I simply mean that if I enter and then the market moves against me a little makes a swing top/bottom after my entry then I will adjust the stop loss to above/below that instead of the entry candle.)

Then at that point if the market comes back and I am stopped out of the trade the I still have some positive pips from the first part of the trade and I am better than break even.
IF the market keeps going in the direction that I want it to then I will adjust my stop each time the market touches on of the sub or main fork lines.
Now just because I do this does not mean that you have to. You can just shoot for the median line of the sub-fork if you like. Really what you should do is some of your own testing to see what you like the best.

To be honest with you the original reason that I developed the whole Five Swing Fork method was to trade with price and not time. To prove that I could do it to a friend of mine. Simple price based rules as it were. I did that and I can still trade that way but I use Time in my every day trading even when working with forks.

Hope this helps

 

[zzuegg]

The pic shows the current situation on EURJPY,
Magenta Lines shows the 3to4 Swing and the 88% retracement of it.
Blue is the main fork and red dotted the subforks.

I have still some issues regarding swing recognition but work is progressing.

Cheers
Michael

 

[zzuegg]

current open trade on EURJPY H1

 

[hwsteele]

This is the first video

This is the second video

This is the third video

This is the fourth video

And this is the fifth video

 

[zzuegg]

Current Situation on the EURJPY,
For a valid 5 Swing, (if i have understand the rules correctly) we need to wait at a close above the 88% retracement. We might see it happen at the current (11.24 GMT+1) bar.
Also this might form a double top, so we are going to short the EJ.
From the first tests, the subforks shows us good exit points, but on this trade we are going to trade the mainfork.

PS: where can i upload the indicator on this forum?

 

[zzuegg]

ah, found the attachment section:
feel free to test

 

[hwsteele]

Current Situation on the EURJPY,
For a valid 5 Swing, (if i have understand the rules correctly) we need to wait at a close above the 88% retracement. We might see it happen at the current (11.24 GMT+1) bar.
Also this might form a double top, so we are going to short the EJ.
From the first tests, the subforks shows us good exit points, but on this trade we are going to trade the mainfork.

PS: where can i upload the indicator on this forum?

Price does not have to close above the 88% line it just has to move above it at somepoint to be a valid fifth swing. Of course the closer the close of the validation candle in the fifth swing is to the top of the main-fork the better our entry will be.
I am about to download and install the indicator and will be back to talk about it...

 

[hwsteele]

Looks good so far!
The only question I have at this point is...

why are the top lines of both the main and sub forks pointing the wrong direction?
Is this a goof up or is there something that I need to adjust to fix this?

 

[zzuegg]

No, the problem here is that the highest point of swing 5 is the current open candle. The lines need a bar after the last swing to be drawn correctly.
I noticed that too, a solution would be to shift the last swing one bar back.

I am drawing the the lines independently and not with the build in pitchfork (i need that to get the values where the price touches the lines)

 

[zzuegg]

Here is the fixed version, if the current bar is the swing endpoint the indicator will shift it back for one bar..

 

[megamuel]

Good programming skills zzuegg but the 5 swing always goes to the current high/low and not where the trade would have been entered. So if you enter a trade the pitchfork could just keep moving away from your entry....

 

[megamuel]

Oh no it doesn't, ignore that!

 

[sri4freedom]

Steele, Recently i found your videos and I did a search for you, and i found you here. nice job. thanks for sharing. Looks like this thread is very quiet?

Steele, I have a quick question - It looked to me like this method would do one of two things - It picks tops and bottoms of swings. In this case, price most likely reaches the final target of last pitchfork.
Or if the market is trending heavily, then your trades are mainly opposite to the current trend - trading the pull back. I also noticed, in this case, price makes it to median line of subfork or the main fork.
are my assumptions correct?