The PitchFork - a great way to define and trade channels

This is how I use pitchforks and I hope it is an inspiration for you too. I like trading channels and the pitchfork is a great way to identify them early on and to confirm these channels. It is not always straightforward to find the right points (1-2-3, see below), but I think the pitchfork is quite powerful and for me a handy tool in addition to other indicators and tools.
If you have not tried it before, give it a go!

Please leave your comments and thoughts so we can all learn and get inspired by each other!!!

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HOW TO SET the PITCHFORK?
A Pitchfork can help identifying a channel in a fairly early stage. Three points need to be used:
1. a previous pre-channel high/low
2. the new channel high
3. the new channel low

If 2 is closer to 1 compared to 3 (vertically) then you will see a descending channel. Otherwise ascending.
Point 1 will become the mid-line of the channel and serves as an additional support/resistance

HOW TO DEFINE OPPORTUNITIES?
Opportunities exist when the price touches the boundaries.
#SELL - In this case we see 3 SELL opportunities when the price touches the upper bound
#LONG - we see 3 LONG opportunities, one of which (partly) failed as it got resisted by midline, which is not uncommon and always a watch out.
#BREAK OUT - We also see a clear break out that can be traded as well, especially after retest.

As always with channels - I prefer to only take LONG opportunities for ascending channels and SHORT for descending. This channel is fairly flat, so both were possible.
Always use this technique in conjunction with other signals.

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