Alright, let’s break it down: Andrew’s Pitchfork is a cool tool in the world of online trading. It's not your usual option in the broker toolbox, and that’s probably why beginners don’t know much about it. But trust me, it’s a fast track for us traders to identify those important support and resistance levels.
Getting to know Andrew’s Pitchfork isn’t too complicated if you follow a few simple rules. Once you figure out how to use it, it could really become a cornerstone of your trading strategy. You create it by marking three points at the end of previous trends, then draw a line from the first point through the midpoint of those two points.
If you're using the Pocket Option platform for strategic trading enhancements, you’re in luck! You can easily find Andrew’s Pitchfork in your Tools List. Keep reading, and I’ll show you how to set it up and use this indicator to enhance your electronic contract trades.
Setting Up the Indicator
When you dive into your Tools on the platform, look for Andrew’s Pitchfork in the technical lines menu (not the indicators, folks).
Here’s the scoop:
Tip #1: Only use Andrew’s Pitchfork on a chart showing an uptrend or downtrend. It just doesn’t work well on sideways movements.
Tip #2: Before you start plotting, pause and wait for a clear breakout and a trend change (or at least a lift). Only then should you bring out the “pitchfork” on the chart.
Tip #3: Once you click on the tool, you’ll see five parallel lines appearing on your main screen. Position that central line right at the last high or low (depending on the trend) and make sure it runs right through the midpoint of the breakout wave.
Curious why it’s called a “pitchfork”? Just take a look at the shape it makes on the chart. You’ll notice a downtrend moving past its previous channel after gaining some serious momentum. The main line of Andrew’s Pitchfork cuts right through the middle.
Once you finish setting it up, you’ll have that pitchfork ready to go, featuring a central line with two parallel lines on either side.
Oh, and check this out—the zones formed by those lines are colored green and red. That’s pretty important.
Trading with Andrew’s
The central line is your “fair price” for the asset, while the side lines show potential space for movement. Andrew’s Pitchfork is great for trading rebounds. Keep an eye on those strong signals bouncing off the central line or the edge of the green zone. But watch out for reversals from the red zone boundaries—they can be unpredictable and should only be approached if you have confirmation from another indicator.
Pro tip: Set your expiration time for at least two bars. A rebound from any line needs confirmation (the next candle should match the color).
You can use Andrew’s on any timeframe. The signals might not flood in, but when they do, you’re looking at an 80% success rate for profit. That’s why the pros dig it.
At the end of the day, there aren’t strict rules for placing your points and drawing those channels; it's all about the judgment you develop over time.
Usually, traders go for the asset when it dips near the support from either the center trendline or the lowest trendline. On the flip side, they'll sell when it nears the resistance from either the center line or the highest trendline. While the center line indicates potential support or resistance, it’s generally not as strong as the two outer lines. In the heat of trading, the levels this indicator provides are super valuable for locking in smart positions.
