Dr. Alan Andrews developed a channel technique to show areas of support
and resistance from a baseline. This use of a median line is the key to
using the Andrews Pitchfork. Buying near lows and selling near highs
that are identified by the "tines" of the pitchfork. The basic premise
is to trade the channel from one level of support or resistance to the
next.
Interpretation
The first element to draw the Andrews Pitchfork is the centerline. The
middle tine, or median line, begins at the most recent contract low or
high. To plot the direction of this point we must attain the other two
points. The top tine is determined by looking at the highest move made
from the origin of the contract low or high. The next point is found by
looking at the retracement of that move. For example, a contract begins
at point A, rallies to point B, and sells off from point B to point C. A
line is drawn from point B and C, and then the line originating at point
A splits those two lines equally.
This pitchfork shows continuing points of support and resistance. The
general use of this tool is to sell when the market rises to line B, and
take profits once prices reach line A, the middle tine, and also to buy
when prices dip to line C and take profits when they reach line A. This
series of movements within the pitchfork affords traders the opportunity
to trade a channel system within a trending market.
Andrews Pitchfork Tool
Charting Andrews Pitchfork:
1. Select the Andrews Pitchfork tool from the Toolbar.
2. The first three clicks setup the pitchfork. The first point is the
handle of the pitchfork and is placed at the end of the previous
trend.(A)
3. Next, you are forming the base of the fork. The first point is the
top of the next trend. (B)
4. The second point completes the base and is placed at the bottom of
the trend. (C)
5. Once you have completed the first three steps you can elongate the
pitchfork to the length desired. Click to place the final point.
Resizing the Andrews Pitchfork Drawing:
1. Select the drawing by clicking on it. Note: The drawing is selected
when boxes appear on the corners.
2. Click on one of the boxes to drag the select point and release the
mouse button.
Moving the Andrews Pitchfork Drawing:
1. Select the drawing by clicking on it. Continue holding down the mouse
button.
2. Drag to the new location and release the mouse button.
Deleting the Andrews Pitchfork Drawing:
1. Select the drawing by clicking on it and press the Del(Delete) key on
your keyboard to remove.
2. Or, right-click on the drawing and select "Delete" from the menu.
Changing the Properties of the Andrews Pitchfork Drawing:
Right-click on the drawing to view the Properties menu. Properties that
can be changed are:
Foreground - Changes the line color of the Andrews Pitchfork.
Line Thickness - Changes the thickness of the Andrews Pitchfork.
Choose values from 1-6.
Line Style - Changes the line style of the Andrews Pitchfork
Line. Choose from Solid, Dashed, Dotted, and more.
Show Extensions - Adds extension and projection lines to the
sides of the Andrews Pitchfork. Odd numbers will add to the top, even
numbers will add to the bottom.
Send to Back - Changes the layer of the drawing. This option is
used when more than one drawing is in the same area of the chart. Click
on "Send to Back" when you need to access a drawing under the Andrews
Pitchfork. Example of Andrews Pitchfork in Track 'n Trade Pro:
Example of Andrews Pitchfork Extensions and Projections:
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