- Handle
- Resistance Trendline "tine"
- Median Line
- Support Trendline "tine"
Steps to creating a Pitchfork
- Find a significant pivot or retracement (in the chart above, the lower left corner)
- Find the next significant pivot or retracement (the dotted blue line connects the first pivot to this second pivot)
- Find the next retracement (in the chart above, the solid blue line starting from the left and going down to the right)
Interpreting Andrew's Pitchfork
The same rules for support and resistance apply to Andrew's Pitchfork. Look to buy at support and look to sell at resistance (see: Support & Resistance). Also, prices are thought to gravitate towards the median line as depicted in the chart above of the S&P 500 exchange traded fund. The chart above shows the long-term view (1 year 6 months) of the stock market; however, Andrew's Pitchfork can be used for shorter time frames.