Andrews Pitchfork
Andrews Pitchfork
Pitchfork is one of our favourite tool. We will use it only at big timeframes (4h D) to have a clear image of trading opportunities.
Pitchfork can be drawn with the correct 3 spots (PIVOT POINTS). We can see at the example how we can pick the correct 3 places to start draw it. The main line of the pitchfork is called MEDIAN LINE. It is followed by two resistance trendlines above the median line, and two support trendlines below the median line.
The concept here is like trading support and resistance levels.So we will keep it really SIMPLE.
System 1.
As soon as we have our pitchfork we will wait to open small buy positions at the support levels. The pithcfork is up so we will enter buy only in this case.
We can try to close our positions at the touch of median line.
NOTE:We can always take partially some profit and let it run.
Our stop loss will be when a candle closes below the last resistance line.
System 2.
At this case we will open small sell positions at the resistance levels.The pithcfork here is looking down.
We can try to close our positions at the touch of median line.
NOTE:We can always take partially some profit and let it run.
Our stop loss will be when a candle closes below the last resistance line. This is a modified schiff pitchfork.Our pivot point to draw it where from monthly candles.There is too many pips to gain here.
system 3.
At this case we will wait for a breakout form top resistance our bottom support levels.We need to see candles close above or below pitchfork.
We will put a stop loos at a close inside tha pitchfork. Again you can see that price respects resistance level 2 times and head up. Our profit can be really good as we are trading big timeframes.
