Use Andrews Pitchfork How To Plot The

The median line tool is one of the standard charting tools available with most tradingcharting platforms.

Developed by Alan Andrews on the concepts of Roger Babson and made famous by various other traders such Tim Morge, the Median line tool makes for a powerful trading method.

Use Andrews Pitchfork How To Plot The

In this article, you will learn about how to plot the median lines and how they can be traded.

Swing highSwing lowSwing high or Swing lowSwing highSwing low.

The median line comprises of three lines, the median line which dissects the two Swing highs or lows, and the upper and lower median lines.

It is the appearance of the median lines which gives it the popular name of Pitchfork.

The chart below shows the pitchfork plotted which is adjusted to the swing high and low points to make sense of the price action.

As per rule 3, we see how price failed to reach the lower median line after breaking the ML, and a reversal takes place with price rallying back to the upper median line.

The chart below is a continuation of the above chart, where we notice price failing to reach the median line, indicating a reversal.

Here, supportresistance lines have been drawn at the pitchforks swing points as well as the last reversal in the pitchfork.

Because the pitchfork tool can serve as an early indicator of trend reversals, pitchforks can be used with Channel trading or with an indicator based trading system.

If only the moving average was used as a trend indicator, then as you can see traders would have missed a big amount of pips in lost trading opportunity.

But what is the guarantee that the lower channel line will hold, especially after there was a fake out at the lower channel line the last time it was tested ( partly shown on chart ).

Earlier in the article we mentioned how the supportresistance levels are stronger with the pitchfork tool.

Trading with Andrews pitchfork requires quite a bit of practice and more importantly patience and with good experience the possibility of developing your own custom trading system based on Andrews pitchfork tool should be quite simple and rewarding.

Please remember these are volatile instruments and there is a high risk of losing your initial investment on each individual transaction.

How To Use Andrews Pitchfork