Regardless of our Trading strategy or the time frame in which we choose to trade, we all have to answer the same question when sitting down to look at price charts:
"What is going on with this market and how do I trade it profitably?"
Day trading, Swing trading, Position trading, Trend following- our strategy for interacting with the financial markets doesn't matter. Regardless of what we are trying to accomplish in the markets, we need to first figure out what price is doing.
Technical indicators may help with this task, but they always lag the price action, give conflicting trading signals, and can quickly lead to the dreaded paralysis of analysis. What we need is a reliable method for accurately predicting, where price will go in the future.
There are only two predictive technical analysis methodologies: Andrews Pitchfork strategy and Fibonacci techniques. Some market technicians will argue that Elliott wave principle is also, predictive in nature. I would counter that Elliott wave theory is more of an art form than a science.
Part I of this book focuses specifically on Andrews Pitchfork.
If you are an experienced Forker, this section of the book will serve as a quick review of basic principles and the five Andrews Pitchfork rules.
The second half of the book is about understanding price behavior: what price is doing now, and what it is likely, to do in the future. Within this context of interpreting price action, two predictive Fibonacci techniques are, presented.
By integrating the techniques in Part I and Part II, a trader can build a framework within, which they can apply their entry/ exit strategies and money/ risk management techniques.
