A Pitchfork Primer, cont’d.

Here’s my feeble attempt at pitchfork explanations.

Imo, there are basically 3 different variations of pitchforks, the differences are in the positioning of the “A” point or handle. The Three are Traditional, Schiff and what I call Discretionary.



The Traditional pitchfork drawn from 3 consecutive swing points basically gives us an angle for future price movement, like drawing a channel in advance. The upper, lower and median lines are like targets for price. Price will normally reverse or stall at these levels, once a reversal takes place price will normally travel to the next line. If price penetrates a line it will normally retest that line before going on.

Other lines that come into play are the; See Chart

Action/target lines, these would be trend lines that are drawn from the A point out thru the B and C points

Warning lines (parallel lines) that are spaced equidistant out from the fork

The normal use of pitchforks is to draw it from the three points and the median would be the logical target. A lot of traders like to see the parallel line that is drawn from the 3rd or final "C" point retested to confirm that price is respecting the fork before entering. Like price making an EW 1 and 2 points back at the parallel before heading on to 3.

One thing I do take notice, I like to see price make the median in the same length of time as measured from the A point to the cross bar or center point of the B to C line. This is shown on the chart as the orange shaded area and then duplicated in the pink. This is just my take, but if price fails it’s attempt to reach the median in this time, it normally means that price is headed back towards the level of C or the Action/reaction line

One other thing is support/resistance lines drawn parallel with the fork thru price often come into play, often times you will see the angle or slope of the fork resonate or duplicate itself throughout the wave.

One more chart coming…..