Andrew’s Pitchfork, otherwise known as median line studies utilizes the concepts of support, resistance, and retracements. As is visually depicted below, Andrew’s Pitchfork consists of:
Charting software finishes the pitchfork by creating the upper resistance “tine", the lower support “tine", and the median line. Note: “tine" is the terminology used by the creator of Andrew’s Pitchfork, Dr. Alan Andrews.
The same rules for support and resistance apply to Andrew’s Pitchfork. Traders might consider buying at support and look to sell at resistance. Also, prices are thought to gravitate towards the median line as depicted in the chart above of the S&P 500 exchange traded fund. The chart above shows the long-term view (1 year 6 months) of the stock market; however, Andrew’s Pitchfork can be used for shorter time frames.
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