Sorry. Maybe this will be of some help/clarify.
First those not familiar with pitchforks, allow me to explain:
The pitchfork can help us time our entries and exits. When price hits the bottom of the pitchfork, it may signal a good entry, while touching the top of the pitchfork may indicate a sell/short opportunity.
Additionally, the savvy investor may use the pitchfork and place stop losses right beneath the structure, knowing price action breaking beneath the bottom line indicates a trend change.
In any trend, it is considered healthy for price to jump around inside the pitchfork, touching the median line when it does. Price, in general, loves that middle or ‘median’ line. No one knows exactly why, but’s it’s cool we don’t judge here.
Obviously, price doesn’t stay right on top of the median, rather, it fluctuates; but for the sake of argument, look at the median line as a ‘magnet’ to which price is attracted.
Conversely, if price bounces off of the bottom line and turn towards the median, but fails to reach the median, this could indicate weakness in the security.
Using oscillators like RSI can help you gauge overbought/oversold conditions.
How do you draw it? Easy. Find your move (as always the larger the time frame, the more likely your analysis will be effective) ID the lowest point of ‘the move’ (P1). Next find the high (p2). Lastly, find the reaction low (p3). Let @TradingView do the rest.
I have to give it to them, they’ve come along way in the last year when it comes to the mobile app. Now, instead of having to scroll through the tools, which is tedious, you can use the pop up context menu to select the different pitchfork types! Love TV- keep it up!
First those not familiar with pitchforks, allow me to explain:
The pitchfork can help us time our entries and exits. When price hits the bottom of the pitchfork, it may signal a good entry, while touching the top of the pitchfork may indicate a sell/short opportunity.
Additionally, the savvy investor may use the pitchfork and place stop losses right beneath the structure, knowing price action breaking beneath the bottom line indicates a trend change.
In any trend, it is considered healthy for price to jump around inside the pitchfork, touching the median line when it does. Price, in general, loves that middle or ‘median’ line. No one knows exactly why, but’s it’s cool we don’t judge here.
Obviously, price doesn’t stay right on top of the median, rather, it fluctuates; but for the sake of argument, look at the median line as a ‘magnet’ to which price is attracted.
Conversely, if price bounces off of the bottom line and turn towards the median, but fails to reach the median, this could indicate weakness in the security.
Using oscillators like RSI can help you gauge overbought/oversold conditions.
How do you draw it? Easy. Find your move (as always the larger the time frame, the more likely your analysis will be effective) ID the lowest point of ‘the move’ (P1). Next find the high (p2). Lastly, find the reaction low (p3). Let @TradingView do the rest.
I have to give it to them, they’ve come along way in the last year when it comes to the mobile app. Now, instead of having to scroll through the tools, which is tedious, you can use the pop up context menu to select the different pitchfork types! Love TV- keep it up!
