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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.
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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. |
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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.
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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. |
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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.
Preferences
Select the drawing by clicking on it. The properties will appear in the
preferences section of your control panel.
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.
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Andrews: You can choose the color, line style, and line
thickness of your lines.
Show Extensions: Select the boxes next to the extensions
you want to add to your pitchfork drawing. The odd numbers are
placed below the main line, and the even numbers are placed
above.
Font: Select the font, size, and color of the text.
Select Show Text to hide or show your text on the chart.
Select Snap to have your lines snap to price bars when
moved. |
Example of Andrews Pitchfork
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