Trend Analysis
other types of trend overlay indicators: andrew’s pitchfork
Andrew’s Pitchfork is a geometrically based price‐overlay indicator. The projected
lines provide support and resistance to price action. The middle line is called the
median. To construct a bearish Andrew’s Pitchfork, we need to:■ (^) Find a significant peak.
■ (^) Identify a subsequent upside retracement back up to the peak (but not
exceeding it).
■ (^) Find the midpoint between the retracement trough and the retracement peak.
■ (^) Draw and project a line from the significant peak through this midpoint (re-
ferred to as the median line).
■ (^) Project lines parallel to this median line from the retracement peak and re-
tracement trough.
The converse applies to bullish pitchforks. Figure 5.53 depicts daily Silver
prices finding support at the median line and upper band in a downtrend.
figure 5.52 One‐Third Decelerating Speed Lines.
figure 5.53 Price Reacting to the Andrew’s Pitchfork on the Daily Chart of Silver.
Source: MetaTrader 4