Description
Andrews' Pitchfork is a channel-based analysis technique developed by Alan Andrews. It is plotted using three points, each marking an important pivot point. It is suggested that one of the following schemes be used: in an uptrend, trough-peak-trough; in a downtrend - peak-trough-peak. First two points define the trendline, last two points define the channel. After the last two points are connected, the channel is completed, and the median line is added, the plot indeed resembles a fork. The main rule of using Andrews' Pitchfork is the same as for the channel: in the uptrend, the upper channel line might serve as resistance, while in downtrend, the lower line might be used as a potential support level. The handle (median line) shows the strength of the trend: in strong uptrend conditions, price tends to be above the median line while in strong downtrend, below.
Andrews' Pitchfork can be transformed into Schiff and modified Schiff Pitchfork. Schiff Pitchfork moves the start point of the handle line halfway to the base of the channel. Modified Schiff Pitchfork adjusts the handle start point by the distance equal to half a difference between price values of base points of the channel.
In order to add the Andrews' Pitchfork to chart, choose it from the Active Tool menu. Specify begin and end points of the trendline and then specify the third point which will set the channel width; the channel will develop automatically.
Properties
Appearance:
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Mode. Defines whether to plot the standard Andrew's Pitchfork, Schiff Pitchfork, or modified Schiff Pitchfork (see description).
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Visible. Set this property to "No" in order to hide the Andrew's Pitchfork.
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Show coefficients. Defines where to show the percentage corresponding to channel lines.
Begin point:
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Value. Defines the price value corresponding to the begin point of the trendline.
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Date/Time. Defines the time scale value corresponding to the begin point of the trendline.
Middle point:
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Value. Defines the price value corresponding to the end point of the trendline (and beginning of the channel base).
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Date/Time. Defines the time scale value corresponding to the end point of the trendline.
End point:
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Value. Defines the price value corresponding to the end point of the channel base.
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Date/Time. Defines the time scale value corresponding to the end point of the channel base.
Curve properties:
This section allows you to add extra parallel lines to the channel. These can be located within the channel and outside it.
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Visible. Defines which of the extra lines should be visible.
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Coefficient. Defines the distance between the extra line and the handle line. This distance is equal to half the channel height multiplied by the coefficient.
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Color. Defines color of the line.
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Style. Defines whether the line is solid, long-dashed, or short-dashed.
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Width. Defines line width in pixels.