Median line - pitchfork trading

Hi guys

Before you read this, i must apologise for my poor English…
The last year i’ve been a regular visitor of this website. In fact it has taught me the basics of the forex market.
As many of you, i went from one technical indicator to another losing my (demo) money along the way. The last 6 months i’ve been concentrating on the action/reaction principle of Babson and the median-line analysis by Andrew’s. I’ve read everything there is to read from Tim Morge, Greg Fisher,… Watching every available youtube video… even buying a worthless book.

If you are familiar with the subjects mentioned above you will understand my strategy. It consist of predicting the 3the pivot-point by drawing the next median line before the actual 3th pivot. I use it mostely intraday on the EUR/USD minute charts with small profit targets on a demo account.

example:

red circle’s: known pivots
green circle’s: reasons why a pivot in de vicinity of the purple line is likely (in this case)

In the example above, i start putting unit’s in when price is near the purple line. The purple line, in this case drawn perfectly, is of course not perfect. It represents an[U] area[/U] of resistance. Prices are, in my opinion, likely to turn in an area around this line.
I’m not trying to say that this is an exact science, but it seems to work for me. It is the[U] only[/U] way i gained profits in the last months.

There is a lot more to say about the strategy and it isn’t as easy as it looks, but i will be looking into it thoroughly. There is potential in my opinion.

I’ll upload an detailed statement from the last month as well. Just as my life, it isn’t perfect. There are trades in there that didn’t meet my requirements and where more sentimental, but it is what it is.

feel free to commentate!

ps: maybe there are some sceptics that are going tot say that it is easy to draw the lines after the pivot’s occurred, but i have no idea why I would make the effort of posting crap…

Juwston

1 Like

I am lerning pitchfork tools too, I got some complications because there is 2 problems that I’m sure you may have also had:
-Choosing the right pivots to drawn the median line
-Not knowing if it is going to stop and reverse or pierce it and then use it as support/ressistance.
Hope to get in contact with you :D. Cheers bro, from Spain, Jordi.