Andrew's Pitchfork

AAA

DEFINITION of 'Andrew's Pitchfork'

A technical indicator that uses three parallel trendlines to identify possible levels of support and resistance. The trendlines are created by placing three points at the end of identified trends. This is usually achieved by placing the points in three consecutive peaks or troughs. Once the points have been placed, a straight line is drawn from the first point that intersects the midpoint of the other two.

Also known as "median line studies".

Andrew's Pitchfork

INVESTOPEDIA EXPLAINS 'Andrew's Pitchfork'

The chart shown here makes it clear why this indicator is called a pitchfork. The first point drawn on the chart forms the handle, while the lines extending from the other two points will make up the prongs.

RELATED TERMS
  1. Peak

    The highest point between the end of an economic expansion and ...
  2. Indicator

    Statistics used to measure current conditions as well as to forecast ...
  3. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  4. Resistance (Resistance Level)

    A chart point or range that caps an increase in the level of ...
  5. Trough

    The stage of the economy's business cycle that marks the end ...
  6. Support (Support Level)

    The price level which, historically, a stock has had difficulty ...
Related Articles
  1. Active Trading Fundamentals

    Support And Resistance Basics

  2. Active Trading Fundamentals

    Trade On Support For The Best Exit Strategy

  3. Forex Education

    Make Sharp Trades Using Andrew's Pitchfork

  4. Trading Strategies

    What is the pitchfork indicator that ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center