Introduction to Pitch Fork Analysis & Median Line Trading involves a fundamental evaluation of market prices and patterns. The software is designed for the investor seeking to identify market trends, signals. It is intended to replace the need for an in-depth knowledge of the markets as the process identifies what type of trend is taking place and where it is likely to lead. For example: if the Dow Jones Industrial Average moves up in price then this should be considered an indication that the US economy will experience economic growth in the near future.
There are numerous indicators that are used in the analysis. These include historical data on the Dow Jones Indicator (Dow Jones), a composite index of over one thousand prices and patterns such as the moving averages. Both these indicators tend to identify a clearly identifiable pattern that is then traded accordingly. The program constantly monitors the market and changes in price. Every time the price passes through the threshold, it is compared with all the other times previously recorded to identify which price level is the closest to the one being predicted.
Each entry is calculated from market data that is pulled from the software using historical data. It checks the criteria for a high probability high profit trade. Every trade is based on the maximum drawdown percentage that can occur during the trading day. Additionally, all orders are controlled by a simple maximum size.
It is important to note that this analysis does not include any dividends. This would violate the algorithm used to determine your risk reward. However, all transactions and positions are still based on the set criteria. There is an abundance of information provided through the various screens. This leaves you free to choose whether to continue.
In order to take advantage of the analysis you must be connected to the Internet. Otherwise you will be unable to access the information you require. The interface is very basic. All you need to do is click on the indicators and the analysis of the market will begin.
It is important to have a robust system in place before entering trades. To ensure that no loss will occur once the program has initiated a trade you should create a number of dummy accounts. By doing this you are able to set each account at a predetermined amount.
Once you are ready to enter a live market you must confirm your order by clicking on the “place” or “done” icon. This verifies that you indeed want to place a buy or sell order. Next the software will attempt to place your order on the market. It is essential to ensure that you have enough funds in your account to cover such an order.
If for some reason the market does not proceed as planned your order will be cancelled and you will lose whatever money was invested. Most programs will allow for multiple attempts at placing a trade on the market. This is ideal as it gives the trader the ability to become familiar with the software and increase the chances of success. Once you have gained a sufficient level of success in using the Pitch Fork analysis tool, the sky is truly the limit as to where you can take your trading skills.
As a fundamental tool this tool can be used to predict trends in the markets and help to establish entry and exit targets in order to maximize returns. The analysis focuses on a particular currency pair and attempts to look at the factors which affect the movements of the underlying security. Some of the more common factors that are considered are the price, supply and demand, economic indicators, news and events, and emotional factors. As we stated in the Introduction to Pitch Fork Analysis, the primary use of the tool is to target entry and exit points for successful trades. However, it is also capable of providing support and resistance levels within the market that will help you determine when and if to enter trades.
The software makes use of technical analysis in order to identify support and resistance levels in the market. Technical analysis is a popular form of analysis which relies on the use of charts and related indicators in order to determine price movement. These charts and indicators will be based on technical factors and these include time frame, candlestick patterns, moving averages and other related technical indicators. This form of analysis will help you determine the trend of the price of a security. It is important to keep in mind that while using this form of analysis you should not always expect to make money as there is always the chance of market breakdown.
The third section of the Introduction to Pitchfork Analysis addresses the use of signals in the Forex market. The signals are often referred to as alerts and they are designed to provide buyers with information regarding specific markets and trends. There are a number of different types of signals that you may choose from including trend lines, envelope shapes, sliders, tick marks, and other shapes. The