Fibonacci Traders

Trading Fibonacci, fractals, RSI and CCI

Andrews Pitchfork Tool

 

One of the most neglected trading tools is the Andrews Pitchfork tool. Seventy percent

of beginners traders never use or know how to trade it like a pro. Nevertheless,

most professional technical traders cherish a powerful trading instrument like

the Andrews Pitchfork toolThis writing aims to convert beginner traders into active

Andrews Pitchfork tool traders and highlights its benefits.

 

What Is The Andrews Pitchfork Tool?

 

It is a trading tool that has almost the same shape like a real farming pitchfork tool.

It connects three points: a low, high and a higher low (or a high, low and a

lower high).  [Author = George Beaulieu = founder of dayprotraders.com]

Image = Real farming pitchfork tool that has a

similar shape like the Andrews Pitchfork tool.

Its most important component is the median line that pierces through the

midpoint of a high and a higher low from the first low (or midpoint of a low

and lower high from an initial high).

In addition, there are two parallel lines to the median line. The first line starts

from the high and the other from the higher low in an up-move.

Image = A blue Andrews Pitchfork tool is drawn on the Goldman

Sachs Group (GS) stock monthly chart. 

 

It connects a price low (green spot) with a high

(red spot) and a higher low (orange spot).

Notice that the Andrews Pitchfork tool was in place since 2004.

Subsequently, it allowed traders and investors to

determine the possible pathway the Goldman Sachs

stock is like to take.  In this instance, the price stayed

within the Andrews Pitchfork tool boundaries for five years.

 

At the end of the bullish trend, a correction began

in 2007 and ended in 2009.

Spot the opening corrective wave (pink line on the chart)

that violated the Andrews Pitchfork tool.

 

 

Role Of Andrews Pitchfork Tool

The Andrews Pitchfork tool strategies help day and swing traders to establish the most probable

pathway the price will take. Moreover, it also helps pin down concealed support

and resistance trend lines. Day and swing traders exploit the Pitchfork tool to

bring to light hot spot trading zones.

By incorporating the Andrews Pitchfork tool strategies with the market geometry, one will unearth

the best-oversold or overbought price level. Technical traders also merge the

Andrews Pitchfork tool with other technical indicators such as MACD, RSI, Stochastic, and

CCI to confirm trading signals. At last, it is possible to mix the Andrews Pitchfork tool and

Fibonacci or the Elliott wave principle.

A familiar trading mistake is to trade in voids instead of trading on the edge.

Actually, more than fifty percent high probability trading setups occur on the

edge.

 

Consequently, active professional traders diligently utilize the Andrews Pitchfork tool to

filter out precarious trading signals that occur in voids. The Andrews Pitchfork tool helps

technical market participants to bring into line their day or swing trading

strategies with the market patterns.  {Author = George Beaulieu founder of dayprotraders}

With this device, pro traders are able to concentrate on the price action instead

of relying exclusively on the indirect trading signals.

Furthermore, by drawing the Andrews Pitchfork tool on a higher time such as weekly, monthly

or the quarterly chart, a day trader or scalper may switch to a lower time frame like

the five or fifteen-minute time frame to take trustworthy trading signals along those

critical price levels.

Whether one is a scalper, day or swing trader, one will find the Andrews Pitchfork tool very

valuable.

 

Image = a red bearish Andrews Pitchfork tool on

the Australian Dollar/US Dollar (AUDUSD) currency pair

weekly chart.

It connects a price high and low with a lower high.  Once again the

price (AUD/USD) is within the bearish Andrews Pitchfork tool's boundaries.

Elliott traders also apply the Andrews Pitchfork tool strategies to forecast the end of the third and fifth

Elliott waves. They can check the intensity of a trend by applying the Andrews Pitchfork tool

to the motive wave. Subsequently, an Elliott wave trader can isolate the opening

part of the corrective phase when the price finally violates the Andrews Pitchfork tool channel.

 

Conclusion

The Andrews Pitchfork tool is a reliable and indispensable trading tool that no trader should

discount. Even so, on its own, it is still a powerful trading tool; it becomes more

lethal when traders combine it with other technical indicators or trading strategies.

Start using the Andrews Pitchfork tool.

 

 

 

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