If you are onto trading, pretty sure you have heard about Andrew pitchforks which finance barely describes as a channel tool. As long as prices are inside a channel, the slope of the pitchfork indicates the trend and you should open positions only in direction of the trend.
That is a very limited and biased view of Andrew pitchforks, which is a complete trading system (with signals, stop, target prices…). True enough, it is hard to master and extremely difficult to automate. Moreover pitchforks are only the simplied view of action-reaction lines already mentioned in this blog. To make it more complicated, Dr Alan Andrew never revealed in written form at least all the secrets of this trading system. I think I have uncovered many of them, and these will be revealed to you in coming posts!
I assume now you know a bit about Andrew pitchforks and will introduce you to the family. For a safe start, you select 3 consecutive pivot points and draw a basic pitchfork:
You may also know the Schiff or 50% pitchfork
But do you know these ones?
All these pitchforks can be used on any chart any time frame. Your goal is to know WHEN to use each one pending on market conditions. Which we will see in later posts.