A channel technique developed by Dr. Alan Andrews that uses three parallel trendlines to show areas of support and resistance.
The three parallel lines are created from three consecutive major peaks or troughs.
Here is an example of an Andrew’s Pitchfork during an uptrend. Point A rallies to Point B, then retraces to Point C, then resumes its uptrend.
First find the most recent low, which is Point A. This is where the middle tine or median line will begin.
Then find the highest move made from Point A. which is Point B. The next point is found by looking for the lowest retracement move from Point B, which is Point C.
The pitchfork shows continuous points of support and resistance.
Forex Education: Andrew's Pitchfork and Chuvashov's Fork Explained
Generally, one would sell when price rises to upper tine, which is line B, and take profit when price reaches the middle tine, which is line A. One would also buy if price falls to the lower tine, which is line C and take profit when it rises back to the middle tine, line A.
The Andrew’s Pitchfork tool allows traders to trade channels when the market is trending.
Trading Books Listing and Description
If you’re looking for additional reading to supplement your forex trading education, you’ve come to the...
Fibonacci ellipses identify underlying structure of price moves.
Fibonacci ellipses circumvent price...
Fibonacci fans name derives from the fanlike appearance of the three trend lines shown. The Fibonacci fans...
Human behavior is not only reflected in chart patterns as large swings, small swings or trend formations....
Fibonacci arcs are created by first drawing an invisible trendline between two points (usually the high and...