Hello NKE,
Thanks for taking some of your free time today to wade through as you put it
. Lots of questions that I will try to answer without beginning a full teaching session on the subject. There are many related concepts that people don't see from a surface or introductory perspective.
A new PF is usually drawn when it appears that a new pivot is forming, that would be the beginning of a change in direction or trend.
If price goes beyond the PF lines (tines), there are associated lines that are drawn to give meaning to that price action. A new PF may not always be needed at that time.
If a PF is drawn "prematurely" meaning, before the final pivot prior to the actual turn, there is a built in method of interpreting the PF that will assist in determining if price is not yet ready to turn.
Old PFs are generally deleted when price no longer seems to respect the tines or associated lines.
Entry criteria is generally when price tests and re-tests tines.
However, understanding price action and market structure is majorly important, if not more important. Too many traders in my estimation are focused on putting tools on charts, without paying attention to price action. The purpose of the tools or indicators is to crystallize to the trader what they are already seeing...just my approach. Other traders may include technical tools like Fibs etc. though some use the PF and its related lines and concepts only.
Working on making my trades available without too much more posting of charts being necessary.
Thanks again for your inquiry. If you think you would like to take my pitchfork trading course (10 sessions), please send me a private message.
Take care,
FX4Newbies
I believe your understanding of how pivots are selected as you have described is correct.
Hi there Newbies
Waded through this thread about A Pitchfork (on a real slow day - although made some pips on cable) - never really looked at it before
From your posts, rules for drawing pitchforks are that you identify 3 alternating pivots and draw PF, the next PF uses the pivots 2 and 3 of the old for 1 and 2 of the new pf and then 3 is the next pivot in the sequence H, L H - L, H, L - so far so good
The questions I have are:
at what point do you draw a new PF - when price has moved outside your existing PF, when price makes a new pivot (and if so how do you identify this as pivots make take at least 1 further bar to form)
when do you delete old PFs - part of the methodology appears to be identifying SR areas where PF tines intersect
what are your entry criteria - you say that you like to enter near S R to manage risk and if you are wrong to avoid being too expensive finding out - is the entry based just on reversal candle patterns near identified SR areas - or do you have other indicators SS etc
But interesting thread - looking forward to some of your posts where you identify trades you have made (not fussed as to before or after the event)