How do i use andrews pitchfork in forex trading?

Question

How do i use andrews pitchfork in forex trading?

Answer 1

I wouldn't bother personally... just grab an effective trading system and go to town. I did that @ 19 and I haven't worked since.

If you're interested I found this site which reviews the top 3 Forex trading systems: http://forex-tracer.the-perfect-solution...

Answer 2

Hello,

Andrews pitchfork is a study using trendlines.  A basic understanding of trendlines and support/resistance levels is appropriate when finding application and interpretation using Andrews Pitchfork's.

This feature is rarely provided in forex trading system. http://www.finexo.com/ provide line and bar charts through with you can make your study.

I do my analysis like this

In constructing my study, Firstly i choose the starting points.  The first is a major peak or trough on the left side of the chart display.  The second and third starting points are chosen to be a major peak and a major trough to the right of the first point.  After all starting points have been decided, i draw a trendline from the first point (the most left) so that it passes directly between the right most points.  This line is called the handle of the pitchfork.  The second and third trend lines are drawn beginning at the starting points and parallel to the handle.  Dr. Andrews suggested that prices make it to the median line (or handle) about 80% of the time while the price trend is in place.  This means that while the basic long term price trend remains intact, Dr. Andrews believed that the smaller trends in price would gravitate toward the median line while the larger price trend remained in tact.  When that does not occur, it may be evidence that a reversal in the larger price trend may be in progress or provides evidence of a stronger bias at work in market.  When price fails to make it to the medial line from either side, it is often an expression of the relative enthusiasm of buyers and sellers and may predict the next major direction of prices.  If prices fail to reach the median line while above the median line, it is a bullish and failing to reach the median line from below is bearish.

This way you can also make your analysis more worthy and helpful to your trade.