It is used by traders to determine when the trajectory of an asset is about to change. It aids in the identification of a trading channel in which an asset is most likely to trade while trending up or down. See also: Wide range of InstaForex technical indicators.Īndrew's Pitchfork is a trend-following predictor that can also be used to forecast market reversals. Wave #3 will normally end on the mid-line or one of the upper/lower outside lines until a mid-line has been drawn on Elliott Waves 1 and 2. Prices will either reverse or return to the outside line as they reach the mid-line of an Andrews Pitchfork, or they will break through the midline and head for the opposite outside line, according to Dr. This will help you spot the top or bottom of a strong Elliott Wave #3. When ADJUST is set to TRUE, the handle's end is shifted from point P1 to the halfway point between P1 and P2, and the tines' and mid-angles lines are changed accordingly.Īndrews Extension is a separate program that plots upper and lowers extended lines parallel to the mid-line at a distance twice that of the main parallel lines. The ADJUST input, which is usually set to FALSE, allows you to change the position of the handle's end in steep markets. The pitchfork is moved back by a half-cycle with each increment of OCCUR.Ī swing can retrace at an extremely fast pace at times. The pitchfork, for example, goes back in time by one-half swing period if OCCUR is set to 2. OCCUR is set to 1 by default, which plots the most recent set of 1-2-3 points. OCCUR is an input that allows the consumer to shift the pitchfork backward in time. The input variables TICKCHG and PCTCHG, as previously defined, regulate the amount of price reversal needed to define a swing reversal, and thus the system's sensitivity. The analysis measures a new set of P1-P2-P3 points and builds a new set of Andrews' Pitchfork lines if a new swing reversal occurs. The TT Andrews' Pitchfork thesis plots Andrews Pitchfork lines through the most recent three swing pivots on a price table. One tine starts at point P2, the other at point P3, and both go all the way to the end of the chart. Then, parallel to the "handle" line, two "tine" lines are plotted. The Andrews Median Line, also known as the "handle" of the pitchfork, is built from point P1 through the midpoint of the swing P2-P3 and extended the right to the end of the map in the case of such a swing.
P1 marks the start of the upswing, P2 marks the highest, and P3 marks the end of the corresponding downswing. Consider combining an upswing and a downswing.