Hey everyone, My previous education idea on Fibonacci Retracement got some good response. Today, I’m back with another education idea, explaining an awesome tool called ‘Pitchfork’. Alan Andrew, the creator of Pitchfork tool, got inspiration from Roger Babson’s action reaction lines for the idea of this epic Pitchfork tool. Likewise, Roger also got inspired from Newton’s third law of Gravity, which is action-reaction theory. So, the main root for the idea of this pitchfork tool is Sir Isaac Newton.
The pitchfork looks like the gardening/agricultural tool used for picking and throwing loose material. There is a usage of median as its primary support or resistance level. There are 4 types of pitchforks, i.e., Original, Schiff, Modified Schiff and Inside. We will discuss only about Original Pitchfork today, which is used in trending markets. The other types of Pitchforks are used in consolidation or reversal or trending markets too. Comment below if you want to learn about the other types of Pitchforks too. There are few trending ways of trading the breakout of Pitchfork, i.e, Price Failure Rule, Divergence, Mini-Median Line and many more. We will not focus on them right now. Do let me know if you want to try them too.
How do I trade the Pitchfork levels? Currently I’m using the Original Pitchfork (for the trending market) with the median levels: 0.5, 1, 1.5, 2. The main median line is red. 0.5 and 1.5 lines are dashed. 1 and 2 are important median lines.
Let’s start with the strategy. We shall start from higher timeframe first. I’m using daily timeframe. Here is how to draw it: I started to draw the Pitchfork from the first low (marked with ‘A’) of the current trend, then you shall click on the next high (marked with ‘B’), then the next low (marked with ‘C’).
Do not forget to turn on the magnet, because every pip matters while drawing the Pitchfork.
Now, you will get the levels to trade. We shall go to the lower timeframes now and check if it is in the same trend till the 15mins timeframe. You have to look for few confirmations on 1 and 4 hourly timeframes before taking the trade. These confirmations may be any candlestick pattern and try confirming with any good oscillator too.
Remember, in the starting of a bullish market, you should always long your first 3 or 4 swing trades.
Here are some of the observations:
Prices will touch these median lines before making any move in 80% of the cases. There are 20% chances that prices might not touch the median levels due to sentiments.
After touching any median line, price might want to reverse or pass by the median line.
For confirming the reversal, you should look for any candlestick pattern and there should be overbought or oversold situation on your oscillator too. Do not take the trade if any one of them is not present on both 1 hourly and 4 hourly timeframes. The target will be the next median line upcoming in the direction of your trade. (For swing trade)
For passing by a median line, price will take a pull back on the 15 minutes timeframe after passing by a median line, in most of the cases. It will always make a wick or some engulfing or doji candles there. These candles are the confirmation that you can trail your SL or get into the trade.
Trust me, it is not as easy it looks on the higher timeframe. The main game is taking entry on the lower timeframes. Try back testing this strategy before using it. Always use proper risk management. Trade Safe!
Hey Dud Can U Explains How to draw and What was More Observation About this.. mostly No person talk about this... I like your. contain Can u brief videos on this topic pitchfork .. please It's help for new person please make bank nifty nifty with Timeframe.
theTAguy
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@Radhey01, Hey, you have to focus on the first wave of the current trend. it can be drawn by clicking on the first low, then first high and then the next low. For more info, watch the video on my YouTube profile through the link in my bio! Do let me know if you want me to add anything in the video.
Hi, great analysis! Just a few questions, the main red median line: if price is trading above it or below it, is there any interpretation regarding strength of trend in that case?
swaraj_rajagopal
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Also correct my interpretation if I’m wrong: we are connecting 3 pivots and arriving at the pitchfork. Post which on the lower time frame we are looking for moves that are with the trend. If the price is breaks the red median line, is that any sort of signal toward going short or looking for shorts?