Multi Andrew PitchFork 5
Multi Andrew PitchFork
ANDREW’S PITCHFORK TRADING STRATEGY
Essentially, Andrew’s Pitchfork is a tool for drawing price channels. While two lines surrounding price are usually enough to draw a channel, the Pitchfork has an extra line. It is the median line or the handle of the Pitchfork.
The median line is central to this trading method. This is why Andrew’s Pitchfork is also known as the Median Line Method.
There are many ways to trade using Andrew’s Pitchfork but the basic idea is that price will oscillate around the median line. In this version, we will focus on trading the first re-test of the limiting median line.
- Draw a bull channel with Andrew’s Pitchfork
- Wait for price to fall and test the lower median line
- No bar high should be lower than the lower median line
- Buy a tick above the high of a bull bar at the lower median line
- Draw a bear channel with Andrew’s Pitchfork
- Wait for price to rise and test the upper median line
- No bar low should be higher than the upper median line
- Sell a tick below the low of a bear bar at the upper median line