Andrew’s Pitchfork indicator

The advantage of applying Andrew’s Pitchfork indicator in forex trading

Andrew’s Pitchfork is a technical indicator which is used to predict profitable opportunities and swing possibilities in the forex market. Named after its inventor Dr. Alan H. Andrews, this tool can be used to get an insight into the overall cycle that affects the spot activity. It is very commonly available on most programs and charting packages. It is also known as median line studies. It is quite different from the usual support and resistance lines. This indicator provides 3 lines with 2 of them acting as the support or resistance and the central line which can act as both or serve as the regression line. The indicator is based on the theory that 80% of the times the prices will move towards the central or median line while 20% of the times it will move randomly and will be prone to wild fluctuations due to market sentiment.

Even though fluctuations may take place due to the market sentiment the other trends will remain unaffected and the trend will only change in the event of a shift in the market sentiments or the supply and demand paradigm. These movements will of course present lucrative opportunities to traders. But like all other technical tools Andrew’s Pitchfork should also be used in conjunction with other indicators to improve the veracity of predictions or signals.

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