Andrew's Pitchfork Trading

2022年10月30日

The Andrews Median line or Pitchfork is a form of tool that is used to identify potential reversals or continuation of trends. The median line tool is one of the standard charting tools available with most trading/charting platforms.

The Andrews pitchfork tool or median line comprises of trend lines that are drawn connecting three price points. Swing high/Swing low/Swing high or Swing low/Swing high/Swing low. The median line comprises of three lines, the median line which dissects the two Swing highs or lows, and the upper and lower median lines. It is the appearance of the median lines which gives it the popular name of Pitchfork.

After identifying the swing high/low points, the Median line should be adjusted in order for the median line to make some sense. The chart below shows the pitchfork plotted which is adjusted to the swing high and low points to make sense of the price action.

The Andrew’s Pitchfork is based on the concept of Action/Reaction and Newton’s law of “Every action has an equal and opposite reaction”.

There are different elements of the Pitchfork tool, they are:
Median line, Upper median line, Lower median line, Upper/lower Trigger line & Upper/Lower Warning line

Andrew’s Pitchfork Trading Rules:
The following is a summary of the Andrews Pitchfork Trading rules.
80% of the time, price reaches the Median line
When price reaches the median line, it can either reverse to the upper or lower median line, or cut through the median line
Failure to break reach the upper or lower median lines, after the median line is cut through indicates a reversal back to the median line
When price reverses before reaching the median line, there is a high probability of price will continue to move in the direction, reaching the upper or lower median line, opposite to the median line
When price breaks the upper or lower median line, they are most likely to reach the upper or lower warning lines
When price cuts through the upper or lower warning lines, they indicate consolidation or the start of a new trend.

Andrews Pitchfork Trading – Conclusion
To summarize, the Andrew’s Pitchfork tool is a versatile trading tool that can be used in any market and in any timeframe. It is best when used with other trading systems or method, but can be traded as a standalone tool as well. Trading with Andrew’s pitchfork requires quite a bit of practice and more importantly patience and with good experience the possibility of developing your own custom trading system based on Andrew’s pitchfork tool should be quite simple and rewarding.