Indicator Pitchfork (Andrews Pitchfork)
Let’s Start to say that Lines formed indicator Pitchfork (Eng. Andrews Pitchfork), can help predict channels of support and resistance in a trending market.
Pitchfork is a method of determining a channel in a trending market:
• this method, in effect, divides the channel head into two smaller equidistant channel.
• Line in Andrews Pitchfork tend to plot support and resistance lines.
Pitchfork indicator was developed by Dr. Alan Andrews and based on what he called his method “action / counteraction”. Originally called the “study of the middle line”, this method is based on a set of lines drawn from the peaks and troughs on the price chart. When they are linked together, the set of lines is strongly reminiscent of the farmer’s pitchfork.
Average line of Dr. Andrews’ Pitchfork and model, frequently show support and resistance lines, where prices tend to stop or turn.
Here are some rules Andrews, designed to work with configuration “Forks” and the Trigger Lines.
Buy Rule 1: when the price makes a break above the upper parallel line, tilted down, it speaks of the power of the market, and can be interpreted as a buy signal.
Buy Rule 2: If the price is not reduced to the midline on the downward slope “Pitchfork” the upper Trigger Line, and then going on a rally and break above the upper Trigger Line, it is a signal to buy.
Sell Rule 1: when the price makes a break below the lower parallel line, tilted up, it shows the weakness of the market, and can be regarded as a signal to sell.
Sell Rule 2: If the upward sloping “Pitchfork” and the bottom lines Trigger price reaches middle line and then falls and makes a break below the lower Trigger Line, it is a sell signal.
Next Andrews trend line – a Low Medium Line. This middle line is also built, as usual, except that it uses a very small pivots. The total number of candles used to construct small midline, is seven. The level of price fluctuations used to build this line, between two and five candles. Low Medium Line is used to clear a signal large midline. Small middle line is always captures the signal before the great middle line. The signals generated by the first, by themselves or can be used as indicators of the fact that the average soon will create a line similar signal.
Buy Rule: Rules of purchase for a low average lines are no different from the right to purchase for the average standard size lines.
Sale Rule: The rules for the sale of small average lines are no different from the right to sell on the Central Line of the standard size