The concept of pitchfork in trading was invented by Dr. Alan Hall Andrews, who, inspired by the work of another great thinker in technical analysis for it’s time, Roger Babson, explained the mechanism of the median line closely guarded by two parallel lines. These median lines present are being present on all charting software under the name of Andrew’s Pitchfork
The basic principle of Andrew’s pitchfork is identifying a set of pivot points, namely three, and project into the future a pitchfork based on those three points. Sounds simple? Well, it isn’t that simple, because there’s a catch. Exactly how to identify those three pivots is the main problem of drawing the right pitchfork. There are a lot of theories out there showing you how to identify those pivots, but for the purpose of this project I will focus on how to interpret the pitchfork and its components.
A pitchfork it is being formed of three pivot points, from where the pitchfork it is projected, a median line (ML), an upper median line (UML) and a lower median line (LML). They are going to be explained in more details in the next chapter.
The purpose of the recording that goes with this sub-chapter is to show you where you can find on the Metatrader platform the Andrew’s Pitchfork tab, how to draw it, how to apply it on a chart, what does it mean, how to work with the settings, etc.
Book recommendation: Mircea Dologa, Integrated Pitchfork Analysis – Basic to Intermediate Level, Wiley Trading, 2008
Mircea Dologa, Integrated Pitchfork Analysis – Basic to Intermediate Level, Wiley Trading, 2008