Andrews pitchfork, drawing the

pitchfork correctly
Most traders are familiar with the Andrews Pitchfork drawing tool. The distinctive
pitchfork shape definitely attracts the eye. In spite of being very recognisable few
traders can draw Andrews pitchfork correctly. This article suggests one solution to
draw a usable Andrews Pitchfork.

THREE POINTS

The trader drawing Andrews Pitchfork needs to determine three points. By adding the
RSI technical indicator below the chart, it can be used to determine the three points.
Select the three most extreme last high and low points of the RSI. The combination to
draw needs to be either low-high-low or high-low-high.

This example shows the combination low-high-low taken from the RSI indicator
below the chart. This results in an Andrews Pitchfork with a slightly bullish trend.

TIP: EXTEND THE FUTURE

In trading the Andrews Pitchfork is used in various ways. All evolve around the
concepts of the market price moving within the band, returning to the central line or
breaking out. In all cases it is useful for the trader to see his Andrews Pitchfork well
extended into the future. This also allows him to see where support and resistance
levels based on the chart, intersect with the Andrews Pitchfork.

The NanoTrader allows you to set the percentage of your chart which is dedicated to
the future. This is extremely useful for traders working with drawing tools.

This example shows a trader with 10% of his chart dedicated to the future. This is
typical for most trading platforms and cannot be changed usually. For a drawing tool
like Andrews Pitchfork which extends into the future, this is not optimal.

This example shows a trader which set 33% as the part of his chart dedicated to the
future. Suddenly the visibility improves.