Following EXANTE usual practice of constant trading platform updates, we are delighted to announce the release of Pitchfork drawing tool created for those, who trade using technical analysis.
Pitchfork (also known as « Andrew’s Pitchfork » or « median line studies ») a tool that offers a quick and easy way for traders to identify possible levels of support and resistance for an asset's price. Pitchfork 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.
The reason this drawing tool is called a "pitchfork" becomes apparent from the shape that is created in the chart. The first point drawn on the chart forms the handle, while the lines extending from the other two points will make up the prongs.
Generally, traders purchase the asset when the price falls near the support of either the center trendline or the lowest trendline. Conversely, they sell the asset when it approaches the resistance of either the center line or the highest trendline. In practice, the levels identified by this indicator are very useful for identifying strategic positions for stop-loss orders.
Drag your desired instrument to the Chart module, click on Drawing window and you will find 3 more different variation of Pitchfork drawing tool besides the standard one:
The Schiff pitchfork is a derivation of the Andrews pitchfork whereby the initial A pivot is moved 50% of the way towards the B pivot in terms of price only. As a result of the moving of the A pivot the slope of the fork is lessened and it is especially useful when charting gently sloping vehicles.
The Modified Schiff pitchfork is a derivation of the Andrews pitchfork whereby the initial A pivot is moved 50% of the way towards the B pivot in terms of both price and time. This differs from the Schiff pitchfork in that there is an additional movement of the A pivot forward 50% in time. As a result of the moving of the A pivot the slope of the fork is lessened and it is especially useful when charting gently sloping vehicles.
Inside Pitchfork origin is located at 1/2 the vertical distance and 1/2 the horizontal distance between the high and low points. The Inside Pitchfork is typically used for trading activity that is occurring within a previous trend range because the angle of the bottom prong is based on 50% of the first two clicks.
Pitchfork drawing tool was automatically added to your trading platform and is ready to be used in your technical analysis. Do not forget that our technical support team works 24/7 in order to assist in any request you may have.
Please contact us via firstname.lastname@example.org and we will get back to you in 2 minutes.