Andrew’s Pitchfork Supplementary Lines and Signals

Andrew’s Pitchfork Supplementary Lines and Signals

Forty Ninth session of Forex Training

Welcome back to Forex professional training in financial markets.

Andrew’s Pitchfork supplementary lines and signals will be studied in this session.

1^st type – Additional Line

In a Bullish pattern, if a price fluctuates over the 3^rd pivot line, which eventually breaks this line by a Bearish candle, then a valid Sell signal is generated only if the price fluctuation could not break the line between the 1^st and the 3^rd pivot lines.

The Bearish candle must close under the 3^rd pivot line.

In a Bearish pattern, if a price fluctuates under the 3^rd pivot line, which eventually breaks this line by a Bullish candle, then a correct Buy signal is generated only if the price fluctuation could not break the line between the 1^st and the 3^rd pivot lines.

The Bullish candle must close over the 3^rd pivot line.

There is a Bullish Andrew’s Pitchfork on MT4 chart that was drawn.

Price has oscillated between the line ½ and the 3^rd pivot line, then it broke the 3^rd pivot line and proceeded towards the bottom.

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2^nd type – Supplementary Signal

In a Bullish pattern, after a price touched the 1^st pivot line and proceeds towards the bottom, if a GAP appears in a market price and the trend continues its downward movement, then a Sell signal is generated and trader can place a Sell order with TP price on the 3^rd pivot line and SL price on the 1^st pivot line.

In a Bearish pattern, after a price passed the 1^st pivot line and proceeds towards the top, if a GAP appears in a market price and the trend continues its upward movement, then a Buy signal is generated and trader can place a Buy order with TP price on the3^rd pivot line and SL price on the 1^st pivot line.

3^rd type – Supplementary Signal

In a Bullish pattern, after a price rises towards the 1^st pivot line, if it does not reach this line and only High of a candle goes near or touches it and returns to a lower price, then a trader can place a Sell order below this candle.

Such candle, like a Shooting Star, shows tendency of market trend towards the bottom.

TP price is on the 3^rd pivot line, while SL price is on the 1^st pivot line.

In a Bearish pattern, after a price falls towards the 1^st pivot line, if it does not meet this line and only Low of a candle, like a Hammer, goes near or touches it and returns to a price, then a trader can place a Buy order over this candle.

Such candle shows a reversal point in a market price. TP price is on the 3^rd pivot line, while SL price is on the 1^st pivot line.

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On Oil chart in a Weekly timeframe, there is a downward Andrew’s pattern.

High price of a Candlestick went near the 1^st pivot line followed by a powerful Bullish candle.

Price increased and passed the 3^rd pivot line, thus, a trader could place a Buy order over the certain candle.

Trader must practice frequently in order to be able to detect the additional lines and signals alongside support and resistance lines that affect signals derived from Andrew’s Pitchfork pattern.

Andrew’s Pitchfork patterns frequently forms alongside Double Top and Double Bottom patterns.

Thus, a trader can derive SL price from the Andrew’s pattern, while TP price would be obtained from a Double Top/Bottom pattern.

That concludes this session, until next time and another session take care.