Next variation on the pitchfork is the Schiff;
B and C points remain the same but the A point or handle is moved to the midpoint of the A to B line.
You will have to experiment with this to understand it’s beauty, this variation of the pitchfork defines price repeatedly in the forex markets. I often draw the shiff at the same time I draw the normal fork, for price will generally respect these lines.
The other variation not shown would be a discretionary fork, basically your adjusting the “A” point in any position so that the median and parallels define price, more of an equidistant channel.
The nuances of the pitchfork are too many to list one just needs to study to see what fits with the individual , but imho it well worth the effort.
Bear
Excellent primer, thanks Bear & Joseph
ReplyDeleteBeing a keen student, I have drawn some pitchforks on the EURUSD chart. Looking at targets for the c wave, 161% of wave a, a=c & two pitchforks all give a target around 1.2560-1.2630. (I'll attach a chart if I can find out how.....)
Bear, I notice that you have two target areas on an earlier chart, I think one of them matches the one I have come up with. How did you identify the other target?