![]() ![]() The Andrews Pitchfork indicator is a technical tool for drawing the price channel in a trending market. You can increase the accuracy of these trades by combining Andrews’ Pitchfork with other technical indicators.īefore we continue with the strategy, let’s define what the technical indicator is and how to apply it to a trading chart. If sentiment changes and supply and demand forces shift, prices will stray, creating a new trend. Thus, the overall longer-term trend will (in theory) remain intact, regardless of the smaller fluctuations. As we stated earlier, Andrews believed that market price action would gravitate toward the median line 80% of the time, with wild fluctuations accounting for the remaining 20%. On a long-term basis, Andrews’ Pitchfork can be used to identify and gauge overall cycles that impact underlying spot activity. In essence, the Pitchfork trading system combines three of these powerful trading systems into one simple method: So, the median line serves as both support and resistance - in other words, it can be seen as a regression line. Since the price tends to be mean reverting by nature, just like any other time series, when using the Andrews Pitchfork trading system, you notice that the price tends to gravitate toward the median line. Being a trading channel, the system follows the price trend. ![]() On the flip side, if it gets below the median trend line, it would retest the bottom of the Andrews Pitchfork channel. The Andrews Pitchfork trading system is based on the general theory that if the price gets through the median trend line, about 80% of the time, it would retest the top of the Andrews Pitchfork channel. ![]() The middle line is called the median line, and there are two consecutive resistance trendlines above it and two consecutive support trendlines below it, which are potential reversal levels. ![]() It is a channel-based analysis technique that uses three to five parallel lines to find sharp trading opportunities. Alan Andrews, the Andrews Pitchfork trading system is an old trading technique that projects potential support and resistance lines. What is the Andrews Pitchfork trading strategy?ĭeveloped by Dr. Andrews Pitchfork trading strategy (backtest and example).What is the Andrews Pitchfork indicator?.What is the Andrews Pitchfork trading strategy?. ![]()
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