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

BREAKING DOWN '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.

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RELATED FAQS
  1. What is the pitchfork indicator that I keep hearing about, and how do I use it?

    The technical indicator known as Andrew's Pitchfork is not that well-known, and it's rarely used by novice traders. However, ... Read Answer >>
  2. What are the main signals traders use when following Andrew's Pitchfork parallel ...

    Read about how to draw and interpret price action from Andrew's Pitchfork, including when buy and sell signals are generated ... Read Answer >>
  3. What are the main rules for building a strategy using Andrew's Pitchforks?

    Understand the proper application and setup of Andrews' pitchfork and how analysts and traders use this tool to predict future ... Read Answer >>
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