How to trade using Andrews Pitchfork

History

Andrews developed his own method of predicting where price is going to go in the market. He said that his method will predict with 80% certainty where price is going to be. He originally called it the Median Line Method. One of the most popular Median Line Method tools were the reaction lines. These lines, when drawn on a chart, looked very similar to pitchforks to his students. So over time the name of this tool changed to the Pitchfork. And in more recent times they named it the Andrews Pitchfork, to credit the man who invented this amazing technical analysis technique.

DEFINITION of 'Andrew's Pitchfork'

A technical indicator that uses three parallel trendlines to identify possible levels of support and resistance. The trendlines are created by placing three points at the end of identified trends. This is usually achieved by placing the points in three consecutive peaks or troughs. Once the points have been placed, a straight line is drawn from the first point that intersects the midpoint of the other two.
Also known as "median line studies".

How to draw an Andrews Pitchfork in 5 steps

Almost every piece of charting software has an Andrews Pitchfork tool, but to understand the inner workings I am going to walk you through the steps of how Alan H. Andrews and his students used to draw one of these pitchforks by hand.
This might be a little too technical in certain parts, but if you don’t understand something just read over it and look at the image. The image with the chart should explain enough for people that are not...

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