EURJPY 1H SCHIFF PITCHFORK LONG TRADING STRATEGYThe Andrews Pitchfork Trading Strategy
Our team at Trading Strategy Guides likes to use the Pitchfork trading system to identify a change in market behavior and make a profit from it. It’s important to understand what Andrews Pitchfork is and what pivots to use. This will give us more confidence later when taking the trades based on the Pitchfork trading system.
Moving forward, we present the buy-side rules of the Andrews Pitchfork trading Indicator.
Step #1: Identify the Three Pivot Points necessary to Draw the Pitchfork lines.
The first thing you need to establish for the Pitchfork trading system is to identify three pivot points necessary to draw the Pitchfork lines. For more insights into this topic, check out the what is Andrews Pitchfork section.
Since we’re looking for buying opportunities, we need to identify a series of rising pivot points.
Step #2: Apply the Pitchfork indicator starting from Pivot 1 and move through Pivot 2 and Pivot 3.
Now, use the three pivots identified and draw the Pitchfork trading system lines by connecting the pivots together. Start from Pivot 1 and move forward through Pivot 2 and Pivot 3.
During this stage, you’ll be plotting the Pitchfork trading system lines. This will map the most important dynamic support and resistance levels. Once you’ve done this correctly you will see a rectangle or pitchfork formed.
Step #3: Buy at the market at the first retest of the lower Pitchfork support trendline.
With the Andrews Pitchfork trading strategy, the price should be contained inside the Pitchfork parallel channel. In this regard, if we’re looking for buying opportunities, assume the lower Pitchfork support trendline to hold the price for a bounce.
We recommend buying when the lower Pitchfork support trendline is tested.
The next logical thing we need to establish for the Andrews Pitchfork trading strategy is where to take profits.
Step #4: Take Partial Profit at the Median Line, and Take Profit 2 at the upper Pitchfork Resistance trendline.
The Pitchfork trading system gives you the flexibility to manage your trades in many different ways.
Our mantra is, “Keep it Simple, Stupid.” In this regard, since the core principle of the Andrews Pitchfork trendline is that price tends to gravitate towards the median line, it’s the logical place to take some profits off the table.
We only take partial profits on the median line because we also want to maximize our profits. This will give the market a chance to retest the upper Pitchfork resistance trendline.
With the Andrews Pitchfork trading system, we’re trading in the direction of the trend. So, the expectation is to see the price moving higher and eventually retest the upper Pitchfork limits.
Note: After TP1 was reached, move your SL at BE. We accomplish two things by doing this. First, we make sure that we accumulate profits. And secondly, if the markets reverse, make sure you stopped at BE and don’t lose any money.
The next important thing we need to establish is where to place your protective stop loss.
Step #5: Place the Stop Loss below the lower Pitchfork trendline and add a buffer of 20-30 pips.
The recommended place to hide our protective stop loss is by adding a buffer of 20 – 30 pips below the lower Pitchfork trendline.
Normally, in an uptrend, the support Pitchfork trendline should hold the price above. However, in order to protect ourselves from possible false breakouts, we’ve added a buffer of around 20-30 pips to our protective stop loss.
Note* In a strong uptrend, it’s quite normal for the price to break and trade above the resistance Pitchfork trendline. Inversely, in a strong downtrend, it’s quite normal for the price to break and trade below the support Pitchfork trendline.
Andrews Pitchfork Trading Strategy Conclusion
There are many Andrews Pitchfork trading strategies that can be built around the Pitchfork trading system lines. They can all be simply derived from the Pitchfork’s trading rules. In order to use this system, you need to understand what Andrews Pitchfork is. You can also read our best short-term trading strategy.
Andrews Pitchfork is simple to understand because, according to the Pitchfork trading system principles, you only need to know these three rules:
Price tends to gravitate towards the median line.
When price breaks the median line there is a high chance it will pull back to retest again the median line.
When price breaks the Pitchfork channel on the opposite side of the channel direction, there is a shift in market sentiment and the trend can reverse.
Channeltradiung
USDCHF 1D HOW TO TRADE BREAKOUTS - HOW TO SURVIVE HEAD FAKESBreakouts are found using Trendlines - Horizontal Sup/Res Ranges - Channels.
Finding the opportunity to see the 2nd or 3rd breakout increases breakout success.
Use a tighter stop loss on a 15m chart helps reduce risk.
If caught in a head fake - with a lighter stop loss - watch for another breakout setup.
Hold for a longer intraday or daily trend move.
ES1! - W5T Elliot Wave, BITS, Roller Coaster IndicatorFollow up from yesterdays @es_f Elliot Wave 4 pullback and completed 5th wave to the tick! Both BITS and Elliot Wave Indicators called this move today. 75-100 plus ticks. Roller Coaster likes to have a more stable environment and didn't have much on it today. Gaps play a MAJOR part in where the market goes guys and gals.
USDZAR color coordinating analysis1. I like trading USDZAR because of the large movement potential. Same reason I like trading Bitcoin, not because the currency is realistic as a monetary replacement to the dollar. I am, however, in support of block-chain technology because of its utility in health & data storage. NOWHERE on the stock market will you see regular moves so big for maximizing profit potentials (on a swing or day trade basis). I've been trading 10 years, take my word...
2. I like to color coordinate my charts. The GREEN line lets me know where the most recent long-term support is located. I say long-term because this is a 4 hour chart. Movements between tops & bottoms of channels could take weeks or months. As a day trader, a price move taking weeks is "long-term" for me. Technically, its more like medium-term, as a genuine "long-term" analysis would be based off a weekly or monthly chart time frame. The GOLD line is a "short-term" area of resistance that may present a problem for price to re-test the most recent high (The RED line). The RED line is the most recent resistance area (again, based on this 4 hour chart). The purple line is the 1st place I'd be expecting to take some profits, as the chart's history has made it clear that this is a price level that more traders are willing to sell.
3. MY STRATEGY: In most of my posts, you'll see that I mainly trade from tops to bottoms of channels. Selling the "highs" & buying the "lows". I'm not here to teach you how to trade, I'll make videos after I'm done pursuing some personal goals of mine. However, the more you look at my chart drawings & other traders who use trend lines & trend channels, you'll begin to see the simple trading patterns that emerge on every trading chart in the world. I color coordinate my lines so that every few hours or few days, they can serve as land-markers to remind me of where price is, where its been, & where its potentially going.
Trading is simple, yet being patient for price to test potential reversal zones is what's difficult. Every technical analysis strategy in the world begins with this foundation. A trader's ability to consistently wait patiently for patterns to form, price levels to be tested, & trade what's seen (not assumed) will be the key to long-term success. A lack of discipline will see a trader frustrated & wanting to quit before they can even see their own potential...thanks for checking out my trades!
BTC Long term SHORT, short term LONG.Red lines indicate BTC is set to fall over the long term. Green lines are buy zones where price may find temporary support for some short term profits. With the recent week's price action, BTC isn't seeing enough buyers stepping in at these levels to make a new high yet. This could change if BTC manages to hold above the downward sloping channel (above the top Red diagonal line). If this happens, BTC can be played as a "bull flag" pattern. The simple logic here is to play "buy the lows, sell the highs", meaning green lines to red lines. If you're a technical trader, don't get caught up in the news & gossip. Ultimate decisions by other investors show up in the chart when they put their money where their mouth is. Enter when you see them doing so...
btc pullbackbtc just held the upward sloping trend. i've already added to my position, awaiting a pullback to add more as long as the trend holds.these new shares i've entered will be sold if price cannot break through & hold the top red line. this will exhibit weakness & potential failure of this position, resulting in the upward sloping (green line) trend. a failure of this trend will produce a significant pullback in the BTC price. see my previous charts for how low BTC is likely to drop before going any higher (if the upward sloping (green line) trend fails..
BTC Pullback?Any decent trader can see what I see here on the DAILY. I'd be looking to add to my LONG-TERM position at a breakout to the upside, above the downward sloping white diagonal line. If this current support level (the upper green line) fails, I"d be looking for buy opportunities at the bottom green line, a solid area of buy support.
I'd appreciate your feedback on how I may make my chart drawings better for you guys. Hope they help! :>
TREND LINES, TOP LINES, BOTTOM LINES, HORIZONTAL LINESYellow highlights shows examples where it broke the line and then reversed.
Green checks identify breaking the line and continuing to the next line.
Current price is at a level where it can either fall below the trend-line to the next anticipated support line
or continue up to the top line.
If it breaks the top-line and holds above it, all those horizontal lines which were drawn from price action,
are future targets
Horizontal lines capture the ebb and flow of regular price action over the course of several days on USD/JPY.
The diagonal line keeps track of a top-line as price is falling.
Note how price sometimes continues and sometimes reverses when it breaks through a line. Be ready for either!
Anticipate the next move.
1. You can draw the line but price doesn't necessarily respect it.
2. When price breaks through a support/resistance line or any other kind of trend-line, there is no guarantee it will keep on going.
Project the ascending top-line of a working trend.
Track the high, low and middle of a working range.
Identify important price levels that are being protected for periods of time.
Create divergence giving a foreshadowing of reversals in price action.
Identify pivotal points based on averages from the previous period, (day, week, month, etc).
A line drawn at the level of a spike in price keeps track of outlier markers for future reference from random* flares in volatility.
A line can help you see where the day's trading took place -- Near the highs, lows or right in the middle of the daily range.
Just as often, when price breaks through a trend-line, it immediately reverses and goes right back from whence it came.
That is to say, when price breaks a trend-line be quick to take the reversals if it immediately fails to hold the new position over the line.
BITCOIN IS... DEAD?Hey Everyone,
Happy Hump day! I have read this morning another publication telling me "BITCOIN IS DEAD?" If you search the internet you will see BTC has been declared dead 100s of times, yet it's still trading... And you're still here reading my chart.
The only people saying it's dead are the ones who don't know how to trade or what to look for. Right now I see a channel has formed and this makes how I trade so much easier. Channel support sits at $6,287 with that support being vital as it also sits on the long term support in pink. It is more likely that support will hold around the $6,400 mark as the Volume Profile has a larger amount of trades conducted in this range. Upper channel support also corresponds with my previous chart and my Elliot Wave Prediction for a 1st wave in the pattern. The chart shown is a Daily Chart, so if you are expecting the movements shown to be done in the next few days you will be disappointed. If you have a look at how fast the movements have been, it has indeed been as painful as watching grass grow. So what is needed here is patience as BTC slowly meanders into it's new pattern.
If that long term support does break I think that could bring a longer and much more painful Bear Market than we have already experienced since Christmas Last year.
REMEMBER IF YOU ARE PRACTICING SAFE... TRADING ALWAYS USE PROTECTION
(minimise your risk, use a stop loss. Especially in Margin Trades) ALWAYS!!!!!!!!!!!!!!!!!!!
<3 Lisa
DISCLAIMER:
The Legal stuff - I'm not financial adviser. Just a few quick thoughts - remember you sit at your computer, you push the buttons...
PS make sure you give me a like, that way you get updates as I post them.... :) <3
USD/JPY Technical analysisThe 4-hour chart of USD/JPY indicates that the pair has broken the downtrend trend line.
It is currently re-testing the broken trend line.
Also it seems the pair has formed an up channel formation.
Unless,it breaks the up channel trend line, the counter will not experience selling pressure.
USDCHF Pullback to Bottom of ChannelAs per my last update on the USDCHF pair, price has come down and currently bouncing off of the bottom of the channel. Overall the Dollar is relatively underperforming, which I have been discussing for the past few week s. My LONG is still on and my target area is still in the green fib extension area, unless price drops out of the channel like a rock and/or fails to reach the top of the channel.