In this edition of Median Line Investigation, A.K.A. Andrews Pitchfork, Section #4, More Procedures, I will share further more techniques and approaches applying Pitchforks that had been launched by myself and my collaborator Kyle Crystal of Lakeshore Specialized Assessment that were launched in our STA White Paper about Median Line Evaluation / Andrews Pitchfork. These incorporate what we have coined as “Combination Pitchforks” and “Dueling Pitchforks” which when combined build a guidance and resistance frequency grid in selling price and time.
The 1st example of the author’s analytical method of diagonal discovery is by working with what we refer to as “Combination Pitchforks”. In the still left panel over, I have utilized a Schiff Adjusted Pitchfork (labeled “a”) to the everyday chart of the Aerospace & Defense ETF (ITA) utilizing a few pivots the minimal at POa, to the significant at P1a, and increased very low at P2a. The panel to the suitable provides a second Schiff modified pitchfork (labeled “b”) utilizing the a few pivots that adhere to drawn at the time again from a lower at POb, to the higher at P1b, and then to the low at P2b. Dashed warning strains are then additional outside pitchfork “b”. The reversal at the higher warning line of the next pitchfork at R1 and reversal two and a fifty percent months later on at the higher parallel at R2 indicates I have identified the correct value/time grid. Now notice that each pitchforks, drawn from diverse pivots, are forming the correct exact angle. This is confirmation that I have found out the dominant frequency within just this market’s rate/time grid. Likely forward, an analyst can carry on to use this frequency strategy. How so? See underneath.
Upon affirmation of a market’s dominant frequencies, a technician can acquire his or her investigation a single stage even further by employing what we refer to as “Dueling Pitchforks”. This technique makes use of two pitchforks (a single bearish, one particular bullish) to type the cost/time grid. In the panel over still left we have drawn a Schiff Adjusted Pitchfork on an hourly NASDAQ 100 Index chart from the higher at PO (in yellow), to the reduced at P1, then to the lower superior at P2. I then have additional many warning lines. Note these warning traces have been highly regarded by cost. On the panel to the correct I have additional a Typical Pitchfork (in red) to the same chart starting from the small at PO, to the significant at P1, then to the increased small pivot position P2, and in the same way, have additional many warning traces. These two pitchforks, functioning from a bear and bull point of view, do the job to reveal the price/time grid acting as diagonal resistance and support.
The chart previously mentioned of the Everyday E-Mini Active Deal serves as an additional case in point of Dueling Pitchforks but makes use of three pitchforks to generate the rate/time grid. The first pitchfork is a Schiff Modified Pitchfork drawn in environmentally friendly from the late February higher at PO, down to the April low at P1 and up to the decreased large at P2. The next originates at the similar April swing reduced at PO and is drawn in blue up to the swing large at P1 and terminates at P2. This is also Schiff Modified, and for clarity purposes we have color coded it blue. The 3rd is a Typical Pitchfork (in pink) drawn from the following swing minimal at PO, to a higher superior at P1 and then down to a higher reduced P2. This completes the grid.
Modern value motion implies that the price/time grid is starting to alter. This is uncovered in the subsequent facts points: Rate has violated prior resistance now guidance at the upper warning line in blue, UWL1, and aid at the decreased parallel LP1, in crimson, has flipped to resistance. Both of those of these developments suggest that the “price unit” or leg up given that PO may perhaps have attained its terminus. What would be the proper subsequent action in this evaluation presented the violation? Incorporate warning traces to the typical pitchfork in red.
In the subsequent Median Line Investigation, A.K.A. Andrews Pitchfork, Portion #5, Pitchforks with Momentum Oscillators, I will share even more approaches and approaches applying Pitchforks. I will also share two genuine time “walk-throughs”
Charts are courtesy of Optuma whose charting program enables users to implement, alter and modify Pitchfork versions and linked instruments in the previously mentioned charts at a simply click of the mouse. To acquire a 30-day trial of Optuma charting software program go to