Advanced Technical Tools
Fibonacci, Elliott, Gann, and More
Andrews Pitchfork Tool
You can apply this theory to your charts by selecting the Andrews Pitchfork tool from your Advanced Charting toolbar. Click where you want the handle of the pitchfork to be (at the end of the previous trend). Your next two clicks will form the base of the fork, or the tops of the next two trends. You can elongate the pitchfork to the length desired. Click to place.
Andrews Pitchfork Theory
Dr. Alan Andrews developed a channel technique to show areas of support and resistance from a baseline. This use of a median line is the key to using the Andrews Pitchfork. Buying near lows and selling near highs that are identified by the "tines" of the pitchfork. The basic premise is to trade the channel from one level of support or resistance to the next.
Interpretation
The first element to draw the Andrews Pitchfork is the centerline. The
middle tine, or median line, begins at the most recent contract low or
high. To plot the direction of this point we must attain the other two
points. The top tine is determined by looking at the highest move made
from the origin of the contract low or high. The next point is found by
looking at the retracement of that move. For example, a contract begins
at point A, rallies to point B, and sells off from point B to point C. A
line is drawn from point B to point C, and the line originating at point
A splits those two lines equally.
This
pitchfork shows continuing points of support and resistance. The general
use of this tool is to sell when the market rises to
line B, take profits once prices reach line A, and buy
when prices dip to line C. This series of movements within the pitchfork
affords traders the opportunity to trade a channel system within a
trending market.
Resizing the Andrews Pitchfork
Select the drawing by clicking on it. You will know the drawing is selected when boxes appear at the corners. Click on a box and drag it to your desired location. Release mouse button to place.
Moving the Andrews Pitchfork
Select the drawing by clicking on it. Drag to the new location and release the mouse button to place.
Deleting the Andrews Pitchfork
Select the drawing by clicking on it. Press the Del (Delete) key on your keyboard. You can also right-click the channel and select “Delete” from the dropdown menu.
Distance Scaling Calculation
Distance scaling is determined from the starting point of the Pitchfork handle to the middle cross line.
Example of Andrews Pitchfork
Preferences
Select the drawing by clicking on it. The properties will appear in the preferences section of your control panel.
1. Restore Settings: TNT Default will change your settings back to the original software settings. My Default will change current settings to your personalized default settings. Apply To All Charts will apply your selected settings on all open charts. Save As My Default will save your current personal settings.
2. Line: From here you can choose the color, line style, and line thickness.
3. Show Extensions: Select the box next to the number of extensions you wanted added to your pitchfork drawing. The odd numbers are placed below, even numbers are placed above.
4. Font: Select the font, size of font, and color of the text. You can also choose to bold or italicize your text. Select the checkbox next to Show Text to hide/show your text on the chart.
5. Snap: Allows the tool to snap to price bars when moved.