Trading with Median Lines /Andrew's pitchfork

[4xpipcounter]

Kavima, that's fine. It all makes good reading, and of course, I get the e-mail when you post.

hey,i'm just having 2 threads - this one to share whatever I know about Pitchforks and the other thread http://www.traderji.com/futures/53485-nifty-entry-exit-target-levels-median-line-charts-7.htmlmy updates on Nifty

 

[Kavima]

Using Median Lines with Stochastics
Check out today's nifty chart
http://www.traderji.com/futures/53485-nifty-entry-exit-target-levels-median-line-charts-8.html#post593455

 

[Kavima]

Using Median Lines and Stochastics for finding Trade entries and Targets

Attached is 60 min Bank nifty chart , where the method of finding trades using combination of Median lines, Stochastics and 50 sma is explained.

The point emphasised is to be on the lookout for a confluence of triggers like Horizontal resistance / support lines with stochastics OB / OS zones and the meeting of price bars at the Median Lines,Upper median lines,Lower median lines .
The trades with entry points with a stoploss point giving a higher Risk:Reward ratio of minimum 1:3 are to be taken rather than with a lesser ratio.

 

[sujittalukder]

Thank you for the post.

 

[Kavima]

Posting a chart using 50 SMA to identify pivots and draw the median lines.
In this approach , The Median line set is drawn after the price crosses 50 SMA and trendlines are used to identify entries .Targets of a price move are previous Swing lows, Trendline supports from previous swing lows, and median line meet of price. In this case where I'm using 50 SMA as a filter to identify the setup to enter Long or Short . However, trades are taken only if the price bar patterns support the direction.

 

[Rish]

Posting a chart using 50 SMA to identify pivots and draw the median lines.
In this approach , The Median line set is drawn after the price crosses 50 SMA and trendlines are used to identify entries .Targets of a price move are previous Swing lows, Trendline supports from previous swing lows, and median line meet of price. In this case where I'm using 50 SMA as a filter to identify the setup to enter Long or Short . However, trades are taken only if the chart patterns support the direction.

My view, near term target is sure for 2117. Any dip Buy SBI. Rest is with market.

 

[toptrader]

but an afl for amibroker is possible to have?

 

[Kavima]

toptrader
I'm not using Amibroker, but I think AFL's are available for drawing pitchforks by choosing the pivots.

 

[Kavima]

I'm posting some trade setups with median lines which i had posted in my blog NiftytradeswithPitchfork earlier.

Trade Setups - Higher Low Setup

Example chart above:Bank Nifty 30 min chart


Higher Low Setup / Retest of Lower Median Line
This is a classic setup of median line system.The rules are my own.
Rules for this Setup

Identify a downswing, a counter upswing and again a pullback.Draw a Median line set with prev Major three swing pivots ( P3 will be end of the downswing or viceversa)
Wait for the price to test the LML and move upwards.
When price crossed 50 % of the pullback which tested the LML Buy position entered.If the price crosses 50 sma it adds to the positiveness of the trade.
Stoploss will be below the test bar low or low of bar below 50 sma.
Targets will be 1.Median Line meet of price, 2. Previous Swing high for Long positions / Low for Short positions , 3. Upper Median Line / Lower median line.
Trailing profits with 5 ema / 10 ema or 5/ 20 ema crossover.

Updated on 25.01.11

The prices met with resistance at the previous swing high.On 5-20 ema crossover the long position closed.
Took add position at 11,100 levels at expected median line support which was stopped out at stoploss level of 11,000.The support levels to be watched for price action for next move.


Trade Setups - 50% R in Pullback

Stock charts with 50 % R Pullback setup

My rules for this Setup


1 Identify a Up or down swing.Wait for a pullback thro 50 sma.The distance below and above 50 sma to be more or less equal.
2.Draw a Median Line thro the pivots of the pullback swing.
3.If downsloping Pitchfork then Short or vice versa.
4.When price crosses 50 % level of pullback swing and 50 sma, Sell in downsloping Pitchfork / Buy in upsloping pitchfork.
5.Stoploss level will be at bar high above 50 sma level
6.Risk/ reward to be calculated before entry.1:2.5 -3 minimum to be maintained.
7.Target levels will be Target1- previous swing low or vice versa,Target 2 will be meeting point at Median Line and further down at LML.
8.To trail profits , Stoploss of close above / below 10 ema , (or ) 5 / 20 ema crossover to be used.



One more setup http://niftytradeswithpitchfork.blogspot.com/2011/01/trading-setup-retest-of-uml.html

 

[Kavima]

Setting up a trade and Projecting targets

[/URL] Uploaded with ImageShack.us[/IMG]