Classic

Pitch Forks Part 1

Pitchforks, unlike trend lines, can provide a more accurate structure that coincides with market structure.

Pitchforks are best used on HTF for the best results.

What makes Pitchforks more reliable than trend lines, is the fact they have backtested statistics.

For example: If the third pivot of a Pitch Fork holds price, then there is an 80% probability to this the median line.

Furthermore, Pitchforks plotted on a HTF with confluence such as; Fibonacci and/or horizontal levels, can provide great TP and Entry levels.

While Pitch Forks are a basic tool, it is still important to know the correct pivots when adding this to your chart.

Be sure to use an asset chart with the most historical data for a more accurate drawing.

And as always, add confluence to such tools.

Time Stamps

2:50 – PITCHFORKS

Great to use on high time frames but can be used on any time frame
You need three pivots – first is the significant high, second is the low and the third pivot is a LH which can correspond with a CC (good confluence)
If the low (pivot three) holds, there is an 80% probability to hit the median line (which is also the target)

8:40 – PITCHFORK STRATEGIES

10:13 – FLAT PRICE ACTION

Once price reaches the median line it can either break it and flip in support (target upper line) or rejects it and reverses (target the previous low). Context!
If the price does not reach the middle line it can be classed as partial rise which indicates weakness.

12:47 – MINI MEDIAN LINE

After identifying a pitchfork on a HTF
When Mike talks about specific levels, especially on HTF he usually means a region.
You can pull the pitchfork from high that hit the main pitchfork, to the low and the SFP and then look for the median line. SFP could be then traded into a HL looking for a higher price to follow. This allows you to short in an uptrend and potentially look for a HL. Adding Fibonacci levels up the confluence

20:50 – PRICE FAILURE