Look at Major Pitchforks, Dating back to 2000 on Spy
Not attempting to predict anything here. Just giving a look of how valid pitchfork levels can be in retrospect and how they can be useful in spotting big swings and future price pivots (swing trades).
The latest pitchfork could have been useful as a predictive tool, going way back. All the tests of the median line that already began in 2012 and happened several times in 2013 and again in 2014 validated the pitchfork as "in play", or demonstrating that the market is in trend within the time and price projections of the pitchfork in question.
Having had that knowledge (that the pitchfork was long validated, and yet to be invalidated as a strong indicator of price and time behavior), we could have expected price to want to snap back to the median line after a break below it and a perfect time to have utilized this high probability situation would have came at the double test of the major pitchfork level (-1) that occurred after the major correction of August 2015.
A good plan, now in hindsight, would have been to enter on that second test, with a stop below the -1.25 line, targeting a median line tag. That would give a decent probability trade (one would think, since the pitchfork had been validated so many times in the past as a "strong pitchfork") with a very attractive risk/reward ratio.
The latest pitchfork could have been useful as a predictive tool, going way back. All the tests of the median line that already began in 2012 and happened several times in 2013 and again in 2014 validated the pitchfork as "in play", or demonstrating that the market is in trend within the time and price projections of the pitchfork in question.
Having had that knowledge (that the pitchfork was long validated, and yet to be invalidated as a strong indicator of price and time behavior), we could have expected price to want to snap back to the median line after a break below it and a perfect time to have utilized this high probability situation would have came at the double test of the major pitchfork level (-1) that occurred after the major correction of August 2015.
A good plan, now in hindsight, would have been to enter on that second test, with a stop below the -1.25 line, targeting a median line tag. That would give a decent probability trade (one would think, since the pitchfork had been validated so many times in the past as a "strong pitchfork") with a very attractive risk/reward ratio.
