By Dr. Mircea Dologa, MD, CTA
Posted: December 21, 2007
As I mentioned in Part 1 of this article, this technique will offer a unique professional trading edge that will keep you well ahead of the crowd. The paragraphs that follow will describe the integration of the method with already existing modern trading tools.
Many of these tools did not exist or were not symbiotically or synergistically used together more than a quarter century ago. But, nowadays, these tools surely belong in the arsenal of the profitable and consistent professional trader:
- Inter-market analysis
- Multiple time frames
- Multiple time frame floor pivots
- Fibonacci ratio arcs
- Elliott Wave principles
- Gann tools
- Jenkins circles
- Wolfe Waves
- Ellipses
In the interest of time and space, I will not be able to treat all of these tools, even briefly. However, if you are interested, you can go to the courses section of pitchforktrader.com, where you will find the contents of both of my books listed. Free excerpts can also be found on the site.
Fibonacci Ratio Arcs
All of the tools described subsequently can be found in the Advanced GET software (more about Advanced GET on www.esignal.com).
Pitchforks Applied to Price & RSI -- P1 / P2 Fibonacci Ratio Trend Lines
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
Figure 4. The 2x3 Gann angle strongly supports the up-trend, having already been tested eight times. It created two intersections (n° 3 and 5). They will be our reversal border line, in case of an angle TL down-breakout.
Gann's Percentage Method of Revealing the Next High
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.
Elliott W5 -- The Highest High -- A Gann Square of Nine Confirmation 
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.
