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Andrews' pitchfork
Three parallel lines from three swing points: a median line that prices often return to, and two outer lines.
The idea in plain words
Dr Alan Andrews observed that after three swing points, prices tend to come back to a line from the first point through the middle of the other two, about 80% of the time by his account. The outer prongs mark the edges of the likely path.
How it is calculated
Click the start of the move (handle), then the next high and the next low (or low and high). The median line runs from the handle through the midpoint of points 2 and 3; parallels pass through points 2 and 3.
Median line: from point 1 through the midpoint of points 2 and 3
Upper and lower prongs: parallel to the median through points 2 and 3How to use it
- Expect prices to gravitate to the median line.
- The outer prongs act as support and resistance.
- Failing to reach the median line hints at a reversal.
Drawing conclusions
- A break outside the pitchfork suggests the trend structure has changed.
Example
After a low, a high and a higher low on GBPUSD, the pitchfork's median rises; the price reaches it a week later and pauses.
Prices in examples are illustrative.
Watch out for
- Choosing the three points is a judgement call; different choices give different forks.
A little history
Dr Alan Andrews taught the technique from the 1960s, building on ideas of Roger Babson.
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.