PitchFork Explained Basic. Guide part 14
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General
Developed by renowned educator Alan Andrews, traders have the ability to use the technical indicator known as Andrews' Pitchfork to implement profitable opportunities and swing modes in forex and other markets. Over the longer term, Andrews' Pitchfork can be used to detect and measure the overall cycles that impact underlying spot activity.
Later, we will explain 2 approaches to use this indicator: trading on the lines and trading outside the lines.
Data:
- Andrews' Pitchfork is a procedure that uses a sequence of 3 trend lines to detect trends and reversals.
- Higher and lower trend lines denote support and resistance.
- Andrews' Pitchfork can provide signals to long or intermediate-term momentum traders, where it is more effective in predicting longer-term market swings.
- Continuous confirmation of breakouts with other technical indicators is offered.
Defining Andrew's trident.
Andrews' Pitchfork (sometimes named "middle line studies") is available in various programs and charting packages and is widely identified by novice and experienced traders. Comparable to the usual and ordinary support and resistance lines, the application gives 2 formidable support/resistance lines with a middle line that can serve as support/resistance or as a pseudo-regression line.
Andrews believed that market cost action would gravitate toward the midline 80% of the time, with fluctuations or changes in emotion accounting for the remaining 20%. As a result, the overall longer-term trend will (in theory) remain intact, regardless of smaller fluctuations.
If the emotion changes and the forces of supply and demand shift, costs will deviate, building an entirely new trend. It is these situations that have the potential to generate relevant profit opportunities in the currency markets. A trader can increase the accuracy of these trades by using Andrews' Pitchfork in mix with other technical indicators.
Applying Andrews' trident.
To use Andrews' Pitchfork, the trader must first identify a major peak or trough that has occurred earlier in the chart. The first point, or pivot, will be plotted at this peak or trough and labeled as point A
Once the pivot has been chosen, the trader should identify both a peak and trough to the right of the first pivot. Most feasibly, this is a correction in the opposite direction of the previous move up or down. In Figure 1, the minor correction out of the trough point A will serve us well as we set up aspects B and C.
Isolated these points, the application can be placed. The handle of the formation starts with the pivot point A and serves as the middle line. The two peaks, formed by the next larger pair and minimum view points B and C, serve as support and resistance of the trend.
Form:
As we can see I place A, B, C. This is a Normal Trident. And I place the following:
80% Trident Body.
S1: Support Zone.
R1: Resistance Zone.
Now let's see how to use it in LONG:.
If we realize we have to see how this is placed. We have to take from a bearish point A looking to initiate a bullish, looking for a high Point B and finally take a point C that gives us the completion of the trident. And taking Point C as an entry. For this we must corroborate with other indicators. Mostly RSI, MACD are usually quite good to make these decisions. Once we verify, we enter long term, we can visualize that in 2 occasions when touching the resistance zone and in the last one to touch that zone. And the RSI and MACD being oversold and losing strength we decide not to enter.
Using it in Bearish.
It is similar, look for the best placement that is consistent, mostly this tool is used on charts greater than 4h. However, manage your risk as always. We can perfectly notice how we could open a short at point C. After touching point B (Support Zone). We can perfectly visualize that the indicators were oversold and using Fixed Volume we could notice a small increase in 4h volume chart. So we decided to enter in Long. Then we could open another short and finally the current position. Where it is not convenient to open a long position because the indicators are overbought despite being down. It is better to take a position next to the current trend or to the break of this trend in case of Long. For now, stay out of Long and look to enter shorts in coherent zones.
Now back to the subject. It's really not difficult to understand. It is a matter of practice. Now regarding configurations I have 2.
b]This basic setup is based on you tracking Pitchfork breakouts. Using tools like RSI, MACD, Volume as a complement. Or fundamental. As you wish.
0 - Middle Line.
0.5 - Gray Zone
1- Support and Resistance
And if we talk about Pitchfork extreme breaks. I use the following.
0 - Middle Line.
0.5 - Gray Zone
1- Support and Resistance
1.5 - Psychological Zone
2- Strong Support and Resistance.
Developed by renowned educator Alan Andrews, traders have the ability to use the technical indicator known as Andrews' Pitchfork to implement profitable opportunities and swing modes in forex and other markets. Over the longer term, Andrews' Pitchfork can be used to detect and measure the overall cycles that impact underlying spot activity.
Later, we will explain 2 approaches to use this indicator: trading on the lines and trading outside the lines.
Data:
- Andrews' Pitchfork is a procedure that uses a sequence of 3 trend lines to detect trends and reversals.
- Higher and lower trend lines denote support and resistance.
- Andrews' Pitchfork can provide signals to long or intermediate-term momentum traders, where it is more effective in predicting longer-term market swings.
- Continuous confirmation of breakouts with other technical indicators is offered.
Defining Andrew's trident.
Andrews' Pitchfork (sometimes named "middle line studies") is available in various programs and charting packages and is widely identified by novice and experienced traders. Comparable to the usual and ordinary support and resistance lines, the application gives 2 formidable support/resistance lines with a middle line that can serve as support/resistance or as a pseudo-regression line.
Andrews believed that market cost action would gravitate toward the midline 80% of the time, with fluctuations or changes in emotion accounting for the remaining 20%. As a result, the overall longer-term trend will (in theory) remain intact, regardless of smaller fluctuations.
If the emotion changes and the forces of supply and demand shift, costs will deviate, building an entirely new trend. It is these situations that have the potential to generate relevant profit opportunities in the currency markets. A trader can increase the accuracy of these trades by using Andrews' Pitchfork in mix with other technical indicators.
Applying Andrews' trident.
To use Andrews' Pitchfork, the trader must first identify a major peak or trough that has occurred earlier in the chart. The first point, or pivot, will be plotted at this peak or trough and labeled as point A
Once the pivot has been chosen, the trader should identify both a peak and trough to the right of the first pivot. Most feasibly, this is a correction in the opposite direction of the previous move up or down. In Figure 1, the minor correction out of the trough point A will serve us well as we set up aspects B and C.
Isolated these points, the application can be placed. The handle of the formation starts with the pivot point A and serves as the middle line. The two peaks, formed by the next larger pair and minimum view points B and C, serve as support and resistance of the trend.
Form:
As we can see I place A, B, C. This is a Normal Trident. And I place the following:
80% Trident Body.
S1: Support Zone.
R1: Resistance Zone.
Now let's see how to use it in LONG:.
If we realize we have to see how this is placed. We have to take from a bearish point A looking to initiate a bullish, looking for a high Point B and finally take a point C that gives us the completion of the trident. And taking Point C as an entry. For this we must corroborate with other indicators. Mostly RSI, MACD are usually quite good to make these decisions. Once we verify, we enter long term, we can visualize that in 2 occasions when touching the resistance zone and in the last one to touch that zone. And the RSI and MACD being oversold and losing strength we decide not to enter.
Using it in Bearish.
It is similar, look for the best placement that is consistent, mostly this tool is used on charts greater than 4h. However, manage your risk as always. We can perfectly notice how we could open a short at point C. After touching point B (Support Zone). We can perfectly visualize that the indicators were oversold and using Fixed Volume we could notice a small increase in 4h volume chart. So we decided to enter in Long. Then we could open another short and finally the current position. Where it is not convenient to open a long position because the indicators are overbought despite being down. It is better to take a position next to the current trend or to the break of this trend in case of Long. For now, stay out of Long and look to enter shorts in coherent zones.
Now back to the subject. It's really not difficult to understand. It is a matter of practice. Now regarding configurations I have 2.
b]This basic setup is based on you tracking Pitchfork breakouts. Using tools like RSI, MACD, Volume as a complement. Or fundamental. As you wish.
0 - Middle Line.
0.5 - Gray Zone
1- Support and Resistance
And if we talk about Pitchfork extreme breaks. I use the following.
0 - Middle Line.
0.5 - Gray Zone
1- Support and Resistance
1.5 - Psychological Zone
2- Strong Support and Resistance.
註釋
These charts have been placed on a logarithmic scale - neutral looking to coincide with Fib's 0.786. On a neutral scale it looks totally different.註釋
Normal Escalar Chart:註釋
Logaritmic Chart:交易結束：目標達成
Close.
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