One of the most neglected trading tools is the Andrews Pitchfork tool. Seventy percent
most professional technical traders cherish a powerful trading instrument like
the Andrews Pitchfork tool. This 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
Actually, more than fifty percent high probability trading setups occur on the
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
of relying exclusively on the indirect trading signals.
Furthermore, by drawing the Andrews Pitchfork tool on a higher time such as weekly, monthly
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
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 waves. They can check the intensity of a trend by applying the Andrews Pitchfork tool
part of the corrective phase when the price finally violates the Andrews Pitchfork tool channel.
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.
|Chart analysis||Pro system|