Forex Videos

In this video, you will learn about price action analysis using pitchforks. Market conditions are dynamic, which means that the price is non-linear. Hence, you need to adapt according to market conditions. A way to do that is to use a tool called frequency shifting.

It is a good idea to draw pitchforks on market extremes. You need to understand the intentions of the market before making a trading decision. You need to make use of more refined geometric patterns in combination with statistical physics.

For example, look at the GBP/USD chart. As you can see, the price is making lower highs and lower lows. At some point, the price broke this pattern, and made a strong move to the upside. As you can see, this is the normal frequency line marked at the fractal candle. The next line to note is the inert frequency line from the major high. So, you have a double top formation formed at these lines.

Price fails to reach the upper line of the fork after the formation of the double top pattern. Adjusting the pitchfork tail to the abstract anchoring position, you can see that now price tests the upper line of the pitchfork. Now, as you can see, this is a double bottom pattern.

Pitchfork lines are otherwise called as support and resistance lines. This is your demand zone and time for a long entry position with your stop-loss below the lows. So, price action serves as a visual way to understand the markets. Hence, correct interpretation of the markets is extremely essential in technical analysis. Otherwise, you are going to have a flawed view of the market. But you must find the way to take advantage of that flawed view to find potential opportunities.