Andrew's Pitchfork Trading Signal Type IV - Technical Analysis
Title
Andrew's Pitchfork Trading Signal Type IV
Element(s)
  • Andrew's Pitchfork pattern
  • Candlestick (Engulfing, Hammer, Piercing Line, Tweezer …)
  • MACD
  • Stochastic

Buy signal

Assuming that Bearish Andrew's Pitchfork pattern has been formed and price moved from 3rd line (Upper line) toward Median Line, if it fluctuates over Median Line without crossing it and bounces back by a powerful reversal Bullish candlestick ( such as Bullish Engulfing, Tweezers Bottom and Piercing Line) then a Buy signal will be generated.

Instead of Candlestick patterns or accompanying with them, on reversal spot if RSI line crosses its level 30 toward top or Stochastic line passes its level 20 toward top then another confirmation for Buy signal is generated.

In addition to those confirmations, if on reversal spot MACD line passes MACD bars toward bottom while both of them are on lower phase then Buy signal confirmation is generated.

  • Entry Price: Over High Price of the given candlestick
  • Take Profit: Double the distance between Entry Price and Stop Loss, over Entry Price
  • Stop Loss: Below Low Price of the candlestick

Sell signal

Assuming that Bearish Andrew Pitchfork pattern has been formed and price moved from 3rd line (Upper Line) toward Median but it did not reach Median line and returned toward 3rd line (Upper line), if it fluctuates below 3rd line without crossing it and bounces back by a powerful reversal Bearish candlestick (such as Bearish Engulfing, Tweezers Top and Dark Cloud) then a Sell signal will be generated.

Instead of Candlestick patterns or accompanying with them, on reversal spot if RSI line crosses its level 70 toward bottom or Stochastic line passes its level 80 toward bottom then another confirmation for Sell signal is generated.

In addition to those confirmations, if on reversal spot MACD line passes MACD bars toward top while both of them are on upper phase then Sell signal confirmation is generated.

  • Entry Price: Below Low Price of the given candlestick
  • Take Profit: Double the distance between Entry Price and Stop Loss, below Entry Price
  • Stop Loss: Over High Price of the candlestick
Compatible markets: All markets and symbols Suitable time-frames: M30 , H1 ,H4 , D1 , W1 , MN

Andrew's Pitchfork Trading Signal Type IV

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