First off, let me apologize if this request is deposited in the wrong area of this forum.
I had an idea last night that I'm sure someone has come up with somewhere in time, but I can't find anything in particular that really comes close to what I'm thinking about.
Lately, in my manual trading strategy, I've been experimenting with the Andrew's Pitchfork and median lines. For those that don't know, the pitchfork takes a top(pivot 1), the next bottom(pivot 2), and the next top(pivot 3), and then bisects the distance between P2 and P3 at it's 50% mark to create a median line. Parallels are then taken from the median line to P2 and P3 creating an upper and lower channel boundary. The inverse also applies, meaning you can start with a bottom(P1), top(P2), and another bottom(P3), giving you the median line and it's slope.
Meta Trader already has a pitchfork built in: This is a 3hr chart of the GBP/JPY from about late March to early May.
Pretty sexy huh. The idea being that price returns back to the median line very often.
So then my idea was that since I set a median line at the 50% level then why not draw parallel lines at my fibo levels as well? This one I basically made by hand with trendlines. I used a my regular fibonacci retracement tool along P2->P3 to see where to intersect the trendlines and then deleted it. If you leave the regular fibo up there it becomes even more interesting, but it's too many lines when taking a screen shot and trying to describe something on a forum.
This is the most recent action at this time of the GBPJPY and this is the 1hr chart.
The blue lines are the original pitchfork, the middle line being at 50%.
The pink lines are my first attempt at hand charting (lol sorta) my internal fibo level idea. The fibo levels are 23.6%, 38.2%, 50%, 61.8%, 78.6%, and 88.6%.
The orange line is just a sliding parallel from the median line(50%) that price seemed to be respecting when it violated the upper parallel. I don't know if it adheres to any creative fibo level - it looks like it may adhere to -13.1% but I don't usually use that level as I've only read about it once or twice.
I'm gonna do one more screen shot of what it looks like with the original fibo levels (retracement between P2 -> P3) in place:
Yep, sexy. I mean if it isn't respecting one set of fibo levels then it's respecting the new fibo channel. I was pretty surprised when I first saw it.
The green lines are my regular fibo levels. Other then previosly stated I have a 127% level and a 168% level in my regular fibo tool.
So then, onto an actual request.
I'd like to be able to make the procedure of creating these things a little easier. I can already do it all with trendlines and my regular fibo tool but I have a lot of offline charts with the period converter, and about 10 different currency pair profile setups. And now, since I see that: yes price MIGHT respect fibo levels of a price channel, the slope of which is set by a median line - I will have to do lots and lots of back testing. This will kinda suck doing this manually across multiple time frames and on multiple offline charts.
So I think to myself "If I totally knew how to code (I don't at all) how would I make it?"
It could probably be made a bunch of different ways.
I guess the best way for me personally is how it's set up now which is the stock pitchfork with fib levels automatically added. I suppose if I was writing it myself I would make it all customizable kinda like the regular fib retracement tool is. Meaning I could take out or add any sort of ridiculous or totally smart level I wanted. Make the lines dotted or dashed or whatever. Change colors - perhaps for each fib level, but at very least for the original median line and probably the original pitchfork parallels (0% & 100%). Id have to make sure I could have more then one 'fibofork', or 'fibochan' on a chart just the same as I often use more then 1 fibo retracement on a chart.
So that's it - as much of it as I can think of right now anyway. Might be a pretty big request (I have no idea how tedious it would be to code this 'fibofork' to work the way that I picture it), but I also think it is a pretty good tool just from my preliminary checking it out. I'll probably be drawing and re-drawing 'fibofork's or 'fibochan's all day now manually to see how valid it is and looking for repeatable setups.
Interested? Comments? Questions?
Thanks in advance.
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