pitchforks applied to price & rsi -- p1 / p2 fibonacci ...€¦ · pitchforks applied to price...

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Page 2: Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci ...€¦ · Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci Ratio Trend Lines 2. ... Gann Angles and Multiple Confluences

Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci Ratio Trend Lines

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Page 3: Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci ...€¦ · Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci Ratio Trend Lines 2. ... Gann Angles and Multiple Confluences

The associated use of RSI applied to market flow and also to itself will frequently unveil opportunities that are otherwise hidden. The use of P1 / P2 Fibonacci ratio trend lines will often pinpoint key reversal levels, unknown even by some pitchfork traders.

Gann Angles and Multiple Confluences

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Page 4: Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci ...€¦ · Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci Ratio Trend Lines 2. ... Gann Angles and Multiple Confluences

Gann's Percentage Method of Revealing the Next High

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Page 5: Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci ...€¦ · Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci Ratio Trend Lines 2. ... Gann Angles and Multiple Confluences

One of the most reliable Gann tools, after the 45° angle, is the percentage method, illustrated in Figure 5. It reveals the most probable following high or low.

W5 End -- Miner and Fisher Fibonacci Ratios -- Multiple-Level Cluster Calculations

Most of us are familiar with the Fibonacci ratio used to calculate price or even time extensions or retracements. In this section of the article, I will describe the calculations necessary for obtaining the multi-level cluster of a W5 termination, the last wave of the impulse pattern.

By studying the table in Figure 6, you will notice that we have used Elliott Wave levels (refer to the chart in Figure 7) to calculate the very probable W5 termination level. Careful observation will reveal that we have used the sub-waves, W1, W0-3, W4 of W5, and also the even-lesser-degree sub-waves, w1, w2, w3, w0-3 and w4 of W5: W5. Finally, we obtained an 11-layer cluster from 144602 to 144896, with a median cluster zone value at the 144750 level, which represents a cluster width of only 0.203% of the highest current market.

By observing the chart in Figure 7, you'll notice that the 144750 level is exactly where the 2.618 Fibonacci ratio intersects the upper median line of the ascending pitchfork -- a superb confluence across the tool methods.

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Page 6: Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci ...€¦ · Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci Ratio Trend Lines 2. ... Gann Angles and Multiple Confluences

Elliott W5 -- The Highest High -- A Gann Square of Nine Confirmation

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Page 7: Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci ...€¦ · Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci Ratio Trend Lines 2. ... Gann Angles and Multiple Confluences

The Benefit of Integration

As you can see, the different state-of-the-art techniques previously described perfectly integrate with pitchfork analysis. We firmly believe that the Integrated Pitchfork Analysis technique not only puts the trader well ahead of the crowd but also ensures a very high probability of detecting and executing low-risk, high-probability trades.

*Reprinted (and modified) with permission from Dr. Mircea Dologa. Parts 1 and 2 of this article were first published as one article in Forex Mastery magazine, November 2007. Dr. Dologa, MD, CTA, is a Commodity Trading Advisor and is founder of a new trading concept for newcomers and experienced traders at: www.pitchforktrader.com.

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