Replies to post #16591 on The TradingEdge

[blacktruck]

Essentially piutchfork charts work off off of 3 pivots


looking at a daily chart..lets use something interesting..


CAT DAILY

Lets start with a TIME FRAME THAT GIVES A TOP..



Using the top as first pivot and next two pivots gives us this down fork..notice I have placed arrows at what I consider to be relevant points..the more relevant points a fork has the more confirmation...the median lines are denoted in this manner..

center=median line
upper=upper ml
lower=lower ml

These are built off of some kind of mathmatical deviations....there is a story that goes like this...Alan Andrews was meeting with his focus group..[ Andrews managed Joe Kennedys money during depression and made the Kennedy fortun)...anyway the Miami TV news team showed up to do a story on Andrews Median lines...through the course of the interview it was disclosed the weather had just bought into the initial accu weather system of radar supported weather forecasts... anyway Andrews bet them that over a two year period his median lines could more accurately predict weather than the stations new found techno monster.......

after six months the station thru in the towel in embarrasment...Tim Morge ( professional trader)..one of the focus team members tells this story frequently...]]

Now lets look at the breakout..



On this breakout I can see several areas for a fork..they are probably all relevant to some degree so I want to look at some points...

first point for fork handle is my last three pivots..
second point ( purple) would be previous low pivot for handle

Take a look..



Finally for starters..I like to explore "gap fork" which are median lines anchored in gaps..

now notice in yellow we have several gaps...so now I want to see if there is a fork that traverses many of these...

Looking for a VISUAL median line...( price loves to revert to the median) I comne up with this...so I am leaving this one live so we can check on it to see if anything nails it...