The term “pitchfork” in financial markets typically refers to a charting tool known as Andrews Pitchfork or Andrew´s Pitchfork. Though it may sound rustic, the tool has nothing to do with farms or medieval mobs. Instead, it’s a precise technical analysis method developed to project probable price channels in trending markets, and it is used by traders who utilize technical analysis as a part of their trading strategy.
The tool was developed by Dr. Alan Andrews, an MIT-trained physicist who applied mathematical and mechanical principles to price action in the market. Andrews Pitchfork is based on the observation that a price tends to move within a channel and oscillate around a median line, gravitating toward equilibrium unless disturbed by strong momentum or external news shocks.
Construction of a Pitchfork
Andrews Pitchfork is plotted using three significant price points. These points are chosen based on identifiable peaks and troughs in the market, typically representing a swing high and a swing low, followed by a counter-move.
The points are labeled as follows:
- Point A: The origin of the trend. Usually a recent low or high.
- Point B: A subsequent high or low that moves in the opposite direction of point A.
- Point C: A retracement that forms the next major swing in the direction of the original trend.
The tool then draws:
- A median line from Point A through the midpoint between B and C.
- Two parallel lines (called upper and lower trendlines) equidistant from the median line, passing through points B and C.
What this forms is a channel that visually resembles a three-pronged pitchfork. This structure acts as a price guide. The median line represents the likely path of price reversion, while the outer lines suggest resistance and support levels.
Market Assumptions
The pitchfork assumes a kind of natural balance in the market and it is underpinned by Newtonian physics-like thinking. If the price strays from equilibrium (the median line), there is a tendency for it to revert back toward it. In practice, this can be useful during strong, well-defined trends. When price reaches the outer bands of the pitchfork, traders look for signs of reversal or breakout. When it hugs the median line, it suggests stability.
This structure mimics the behavior of assets in trending conditions, where price doesn’t move in a straight line but instead fluctuates within a corridor of highs and lows, making higher highs and higher lows or the opposite in a downtrend.
Applications in Trading
Traders use Andrews Pitchfork to:
- Project price targets based on previous trends
- Define trade entry and exit zones
- Identify potential reversals at the upper or lower boundaries
- Determine if a trend is gaining or losing momentum based on how price interacts with the median line
The tool is particularly popular among swing traders and trend followers, and it is used in variety of markets, including forex and equities. It can be used in combination with other tools like Fibonacci retracements, RSI (Relative Strength Index), and moving averages to confirm or reject signals.
Example of Use
Suppose a trader identifies a rising trend on a daily chart. They mark a recent swing low as Point A, a subsequent swing high as Point B, and a retracement low as Point C. When the pitchfork is drawn, price begins moving within the created channel. The trader may look for long entries near the lower trendline and profit targets near the upper line. If price crosses the upper boundary with strength, it may suggest a breakout. If it fails and returns to the median, it implies a retracement.
Limitations and Criticism of Andrews Pitchfork
Like all technical tools, Andrews pitchfork is not infallible. Its effectiveness depends heavily on the correct selection of anchor points. If the trader misidentifies any of the three key swing points, the resulting pitchfork will be skewed and unreliable.
Additionally, pitchforks work best in clean, trending markets. In range-bound or choppy conditions, the median line becomes irrelevant, and price movements may regularly violate the boundaries of the pitchfork with no consistent pattern.
Another limitation is that pitchforks do not account for fundamental events, such as earnings releases or geopolitical news. It is purely a visual, reactive tool and should not be treated as predictive in isolation. (This is not unique to pitchforks. Technical analysis is technical analysis, and is not the same as fundamental analysis.)
Why Traders Use Andrews Pitchfork
Despite its limitations, Andrews Pitchfork remains a valuable visual tool because it imposes structure on certain price behavior. Traders who use pitchforks often appreciate their simplicity, non-subjective nature, and the way they help map out probable scenarios based on existing price action. The best results come when pitchforks are used in a clear trend and combined with volume analysis, support/resistance levels from higher time frames, and confirmation from price-based indicators.
Alternative Pitchforks
In addition to the classic Andrews Pitchfork, some traders use variants, such as:
- The Schiff Pitchfork, which adjusts the median line using a modified midpoint to account for steeper trends
- The Modified Schiff Pitchfork, which further adapts the midpoint to reduce lag in strongly trending markets
These two variants attempt to address the limitations of the original tool in fast-moving or highly volatile markets.
Trivia: The Shiff Pitchfork is named after Jerome Schiff, a New York City trader who participated in Andrew´s course and brought the adjustment to his teacher´s attention. Andrew´s often incorporated student observations into his course and named each addition after the respective student. A notable example are the Hagopian Lines, named after the student Tom Hagopian.
Generally speaking, Andrews Pitchfork works best in normal trends, while the Shiff Pitchfork is better in very strong trends, and the Modified Shiff Pitchfork can be necessary to handle complicated situations that involves mixed, steep or choppy trends. In a mixed trend environment, Andrews can miss reactions, while the Modified Shiff adapts better. When the trend is steep, Andrews may be too flat and Schiff too steep, but the Modified Shiff is the “Goldilocks fit”. It is well known that any fixed fork may mislead the trader in choppy conditions, but the Modified Shiff reduces overfitting.
Using the Shiff Pitchfork
The Shiff Pitchfork modifies Andrews Pitchfork by adjusting the starting point (pivot A). Shifting Point A can significantly change both angle and orientation of the pitchfork, and make it more responsive to actual price movement in trending markets.
This is how you do it:
- You select 3 pivot points. Point A is the initial pivot (high or low). Point B is a pivot high or low after Point A. Point C is a pivot low or high after Point B.
- You now modify Point A. Instead of just using Point A is it is, you shift the point halfway horizontally and vertically toward Point B. This creates a new origin point, and it will be used to draw the median line.
- Draw the median line from the adjusted Point A, through the midpoint of Point B and Point C. Draw parallel lines from Point B and Point C to complete the fork.
As mentioned above, adjusting Point A in this manner makes the pitchfork more responsive to acutal price movement in trending markets. It also reduces “misses” of the median line. (When price consistently avoids the centreline). In certain market structures, you also get a cleaner structure with better channeling.
Using the Modified Schiff Pitchfork
When you use the Modified Schiff Pitchfork, you adjust Point A horizontally, but not vertically. It can be described as a compromise between Andrews Pitchfork and the Shiff Pitchfork.
Example: We assume that Point A is a major low, Point B is a swing high, and Point C is a higher low. If you were drawing Andrews Pitchfork, you would draw the median line from Point A to midpoint of Point B and Point C. If you were drawing Shiff´s Pitchfork, you would be drawing the median line from Point A to midpoint of Point B and Point C, after adjusting Point A both horizontally and vertically. With the Modified Shiff Pitchfork, you adjust Point A horizontal (but not vertically) halfway toward Point B, before drawing the median line from Point A to midpoint of Point B and Point C.
The Modified Shiff Pitchfork is typically utilized when neither Andrew´s nor Shiff´s Pitchfork align well in strongly trending or volatile markets. Using the Modified Schiff Pitchfork method helps you pitchfork anchor in a more trend-sensitive position. It can also improve alignment with steeper and flatter trends, and reduce the risk of drastically overshooting or undershooting the median line.
The Modified Shiff Pitchfork is preferred in very strong uptrends or downtrends, as it adjusts well for trend angle without overreacting. In conditions where the other pitchforks result in median line “misses” or underreactions, the Modified Shiff Pitchfork can provide better channeling. For extremely volatile markets, such as cryptocurrency exchange rates, the Modified Shiff Pitchfork can be useful as it makes a smoother centerline trajectory.
The Modified Shiff is more reliable in steep or fast-moving markets, it reduces false signals, and is great for aligning structure in complex corrections or impulses. For beginners, it can be more complicated to use (especially compared to Andrews Pitchfork). For all traders, it is important to remember that while it is generally hailed as an improved pitchfork, it is still a subjective tool, as the end result depends on pivot choice and market structure.
It can be a bit tricky to find the Modified Shiff Pitchfork on trading platforms, and not all trading platforms have them. If you are on TradingView, you first need to select “Pitchfork” and the adjust the pitchfork style to “Modified Shiff” in settings. MetaTrader 5 (MT5) only have the standard Andrews Pitchfork as a built-in tool by default, not the Shiff Pitchfork nor not the Modified Pitchfork. In ThinkorSwim (TOS) by TD Ameritrade (now part of Charles Schwab), only the Standard Andrews’ Pitchfork is available via the drawing tools menu. You have to manually draw and adjust Shiff and Modified Shiff if you want to use them. NinjaTrader has both Andrews, Shiff and Modified Shiff as built-in tools, and you access them directly from the chart. Right-click on the chart, click on Pitchforks, and you will see all three pitchforks as available alternatives.
Types of Trading Where Andrews Pitchforks Are Used
The Andrews Pitchfork is a flexible technical analysis tool that suits various trading styles and timeframes. While not as commonly used as moving averages or RSI, it remains a go-to for traders who prioritize structure and trend forecasting over reactive, signal-based systems. Its effectiveness depends on market behavior and trader discipline more than asset class or charting software.
Below, we will look at a few different types of trading where pitchforks are utilized.
Swing Trading
Swing trading is arguably where the pitchfork performs best. Swing traders aim to capitalize on medium-term price movements that last several days to a few weeks. These traders rely heavily on identifying established trends and likely retracement levels, both of which are central to pitchfork logic. By defining a clear trend channel with the pitchfork, swing traders can anticipate likely bounce areas along the lower or upper lines and plan trades accordingly. The median line serves as a guide for the expected price path, allowing for calculated entries and exits rather than impulsive decisions. Because swing trades are not as sensitive to minute-by-minute market fluctuations, pitchforks are ideal for filtering out noise and focusing on broader directional behavior. Swing traders typically keep their positions open for a at least a few days, often more.
Trend Following
Trend followers, whether they trade over days or months, can use the pitchfork to visualize the “roadmap” of a trend. The tool helps them maintain objectivity by keeping attention on the prevailing direction of price and avoiding premature reversals or exits. For this group, the median line represents the gravity point of price action, and as long as price respects that structure, the trend is considered intact. If the pitchfork channel is repeatedly tested and price fails to break it, it reinforces the strength of the trend and the validity of continued positioning. In this context, pitchforks are often used with higher timeframes (daily, weekly, even monthly charts) to capture broader trends without being shaken out by intraday volatility.
Position Trading
Position traders operate over much longer periods than swing trader and trend traders. They often hold trades for weeks or months, and they require broader technical frameworks. On weekly or monthly charts, pitchforks can help map long-term support and resistance zones. These long-range pitchforks don’t offer precise entry signals but serve as a structural overlay to monitor the direction and rhythm of price movement over time. This is particularly useful in equity markets, where earnings cycles, macro trends, and business fundamentals may unfold slowly. A well-drawn pitchfork on a two-year chart can offer valuable insight.
Intraday Trading (Day Trading)
While pitchforks are not typically favored by intraday traders, they can still be applied to intraday charts under certain circumstances, particularly in trending sessions. Traders who use them this way often combine pitchfork analysis with shorter-term indicators like VWAP, moving averages, or momentum oscillators to time entries and exits within the broader channel. On timeframes like the 15-minute or 30-minute chart, a pitchfork can help define the session’s direction and potential bounce zones, particularly for major forex pairs where liquidity is high and trends can unfold cleanly across a single day. For those exploring systematic techniques and real-time setups, Daytrading.com offers a wide range of educational content geared specifically toward intraday market participants.
Types of Markets Where Andrews Pitchforks Are Used
Futures Contracts
Pitchforks are widely used by technical traders engaged in futures trading, especially when the futures are based on commodities. Futures markets are often driven by momentum and highly speculative flows, making them ideal for tools that model price channels and trend extension. Futures traders frequently use pitchforks to identify probable ranges and breakout zones, especially in trending commodity markets like crude oil, gold, and agricultural contracts. Because futures markets tend to be volatile and often extend sharply in one direction, pitchforks allow traders to distinguish between temporary pullbacks and true trend reversals. Pitchforks also work well in combination with volume profile analysis and COT (Commitment of Traders) data for deeper trade planning.
Forex (Foreign Currency)
The foreign exchange market lends itself naturally to pitchfork analysis because of its technical behavior and tendency to move in clearly defined waves. Forex traders, especially those trading major pairs, use pitchforks to set up medium-term channels based on central bank trends or macroeconomic cycles. In a market where price often reacts to psychological levels and retracement zones, the structure provided by a pitchfork adds a visual guide to otherwise chaotic price moves. Many forex platforms include pitchforks as a default tool, and it’s common to see traders apply them to 4-hour, daily, and weekly charts.
Cryptocurrency
Although less common among mainstream cryptocurrency traders, pitchforks have found a niche in the digital asset space, as traders look to apply classical technical analysis tools developed for the forex market. Cryptocurrency markets are known for their extreme volatility and lack of fundamentals. In this environment, pitchforks provide a sense of structure and trend direction, which can be especially important in markets where long-term narratives are still being built. On higher timeframes, a pitchfork can help filter hype from meaningful trend movement.
Learning How To Use Pitchforks in Trading
Learning to use Andrews Pitchfork (and the variants) requires more than just dropping the tool onto a chart. It’s about understanding what the tool is designed to show, how to apply it correctly, and when it becomes unreliable. For traders who prefer structure, geometry, and trend-based systems, pitchforks offer a disciplined way to interpret price action. But there’s a learning curve, especially for those used to indicator-heavy setups or reactive trading styles.
Start with the Theory
Before plotting anything, learn the theory behind the tool. Andrews Pitchfork is based on three points that represent significant highs and lows in a trend. These are not random; they’re chosen because they reflect a shift in market momentum. Once selected, the tool draws a median line and two parallel lines that form a potential price channel.
The theory behind pitchforks:
- Median line theory: Price gravitates toward the median line over time.
- Equidistant trend structure: Markets often oscillate within a consistent range during a trend.
- Support/resistance behavior: Outer pitchfork lines can act as boundaries for reversal or breakout setups.
Understanding these ideas helps you treat the pitchfork as a guide rather than a strict prediction.
Choose the Right Charts and Markets
Pitchforks don’t work in all conditions. They’re most useful in trending markets with clean highs and lows. Consolidation periods, ranging behavior, or choppy intraday action tend to invalidate the structure. Start learning on higher timeframes (like daily or 4-hour charts) because these are smoother, less noisy, and easier to analyze. Major forex pairs, major stock indexes, trending equities, and commodities like gold and crude oil are solid places to begin. Avoid learning on lower timeframes where price movement is more erratic.
Learn How to Select Anchor Points
This is where most beginners get it wrong. The three points used to draw a pitchfork (A, B, and C) determine everything about its usefulness. Point A is the start of the trend. Point B is the first swing high or low after that. Point C is the retracement. If these points are misidentified (like using minor intraday swings instead of major pivots) the resulting pitchfork will be weak and easily broken. Practice identifying proper anchor points using visible swing highs and lows on clean trending charts.
Use a Charting Platform with Manual Drawing Tools
Interactive tools are critical. Platforms like TradingView, MetaTrader, NinjaTrader, or Thinkorswim all offer pitchfork drawing tools. These allow you to manually set the three points and adjust them in real time. Start by plotting pitchforks historically and seeing how price reacted. Then try drawing them on live charts without trading, simply observing. Avoid automated pitchfork systems early on. They usually lack the nuance required for proper setup and can encourage lazy thinking.
Study Real Charts and Historical Examples
Go back through historical data and draw pitchforks on completed trends. Look at where price respected the lines, where it broke through, and what happened afterward. This is one of the most effective ways to internalize how the pitchfork behaves in live markets. You can also find chartbooks and trading journals online (especially in trading forums) where experienced traders post pitchfork setups, explain their reasoning, and show results.
Learn Variations: Schiff and Modified Schiff
Once you’re comfortable with the standard pitchfork, learn its two main variations:
- The Schiff Pitchfork shifts the median line slightly to adjust for steep trends.
- The Modified Schiff provides an even more conservative structure, useful when price frequently overshoots.
These tools help adapt the pitchfork concept to different market conditions without abandoning its core framework.
Combine Pitchforks with Other Tools
Pitchforks shouldn’t be used in isolation. They work best when combined with other tools, such as:
- Price action (candlestick patterns, breakouts)
- Volume indicators
- Support and resistance zones from longer timeframes
- Momentum tools (MACD, RSI, Stochastic)
For example, a bounce off the lower pitchfork line that coincides with a bullish engulfing pattern and rising volume offers a higher-probability setup than the pitchfork line alone.
Pick High-Quality Educational Sources
There is a lot of educational material out there and the quality is mixed, to say the least. Look for high quality material that is actually educational and not just a sales pitch. You can for instance take a look at Alan Andrews’ original work, to get it straight from the horse’s mouth. Alan Andrew´s Median Line course is still referenced in many trading communities. Another reputable source is Dr. Mircea Dologa´s “Integrated Pitchfork Analysis”. In the UK, experienced retail traders often turn to Investing.co.uk for structured educational content on both traditional and modern analysis techniques, including pitchforks and their place within broader trading systems.
Backtest Your Pitchfork Setups Before Risking Any Real Money
Use free demo accounts or chart replay features to test your pitchfork setups against real-world market data. Log every trade idea based on pitchfork entries: what you saw, why you expected price to bounce or break, and what actually happened. Over time, patterns will emerge. You’ll learn when your pitchforks are reliable and when they’re noise. You can also experiment with pitchforks across different timeframes or markets to see where your understanding holds up and where it breaks down.
Many beginners are impatient and skip this step, but it is really important to start with chart analysis, not live trades. The biggest mistake new pitchfork users make is jumping into trades based on the tool without enough screen time. Give yourself 100+ practice charts before even considering risking money.
Get Used to It With Small Stakes
When you transition from play-money demo accounts or practice charts to actually putting real money on the line, start small. This is recommended even if you are an experienced trader used to juggling large positions and have plenty of trades open simultaneously. You are learning something new, and the best course of action is baby steps. Start with small stakes. Do not over extend yourself. Make sure you have enough time to properly journal and analyze each trade.
Understanding the Background
Andrews pitchfork is based on Median Line Analysis, and he is the one who brought median line analysis into the world of financial market speculation. The concept itself is much older and draw from Newtonian physics (especially the action-reaction principle) and geometric symmetry in price. Roger Babson (1875-1967), a financier and economist, was one of the first to attempt applying concepts from Newtonian physics to financial markets. Allegedly, he believed that markets moved in accordance with physical laws. As a consequence, he researched “price gravity”.
Dr. Alan H. Andrews (who died in 1985) developed the pitchfork and spread the idea to a wider range of traders through his Foundation for Economic Stabilization (FFES). Since then, several of his students have worked to refine and elaborate Andrew´s techniques, and there are also many traders who have developed methods for how the pitchfork can be used in conjunction with other indicators.
Little is known about Dr. Alan H. Andrews outside his life as a teacher, but we do know that his father owned a broker/dealer firm and is said to have made a large amount of money during the Great Depression. Alan Andrews enrolled at engineering school at Massachusetts Institute of Technology (MIT), before moving on to Harvard. After graduation, his father allegedly challenged him to make $1 million in one year by working at the family´s brokerage firm. Andrews did not reach that goal during his first year, but within two years he had made $1 million from commodities trading. Despite this, Andrews did not continue to focus solely on trading. Instead, he began teaching civil engineering at the University of Miami.
After retiring from his career as a university teacher in Florida, Andrews returned to trading. Still a teacher at heart, he wanted to more than just manage his own investments, and he began to write a weekly advisory letter that other traders could subscribe to for a fee. The newsletter included both trading method instructions and specific recommendations for the coming week. Andrews also created the Foundation for Economic Stabilization (FFES) Case Study Course, where the main idea was to use principles borrowed from mathematical probability and apply them to trading.
Among other things, the FFES Case Study Course included information about various median line methods, particularly fan lines (which Andrews nicknamed “Horns of Plenty”). The course was available for purchase in the 1960s and 1970s, and Andrews also offered seminars and one-on-ones to New York and Chicago pit traders.
Roger Ward Babson and George Fillmore Swain
Roger Babson (b. 1875) was a statistician, economist, bond trader, businessman, and writer, and the founder of Babson´s Statistical Organization.
Roger Babson was born in Gloucester, Massachusetts, in 1875. His father Nathaniel was a dry-goods merchant and his mother Nellie owned a millinery store. Roger would later describe himself as an unruly child, who was whipped by his school teacher. The first statistics he compiled was actually a record of thrashings that boys and girls had received during the school year.
Just like Andrews, Babson studied engineering at the MIT. Babson was enrolled there in 1895-1898 and developed was would be a long-lasting friendship with his professor of engineering, George F. Swain. They were both interested in developing Median Line Analysis, and their work would become very important for Alan Andrews.
In 1907, Babson was in New York, selling his bond statistical analytical research, and he was present when the devastating New York Stock Exchange Crash (the Panic of 1907) took place in October that year. The experience had a major impact on him, and he was taken aback by the enormous losses suffered by educated and experienced traders and investors.
Armed with his knowledge about statistical analysis, and the information he garnered from reading George Benner’s “Prophecies of Future Ups and Downs in Prices” and “How Money is Made In Security Investments” by Henry Hall, Babson was certain there must be a way to predict market changes in a more proactive manner. To that end, he sought out his old friend Professor Swain, and together they concluded that it would be possible to forge a new method for market forecasting. Swain drew a “normal line” through the historical prices for pig iron, corn, and hogs, thereby normalizing the volatile zig-zag index. It was also Swain who suggested that Newton´s Law of Action and Reaction might be relevant in economy, just as it is relevant in physics and chemistry.
These are the origins of the new famous Babson charts, charts which were eventually integrated into Babson´s Statistical Organization´s publications. Famously, Babson actually predicted the 1929 stock market crash over one month in advance, and his forecast was widely reported in financial publications at the time.
Babson´s fascination for the works of Newton remained strong, and at the suggestion of Thomas Edison, he established the Gravity Research Foundation. In one of this seminars, he showed how Newton´s Third Law could be applied to financial markets, and this is how he met Alan Andrews. They became friends and Andrews learned about the action-reaction techniques. Later on, Andrews would name his Median Line Course the Action-Reaction Course, in acknowledgment of his mentor Babson.
Other Examples of Important Indicators in Technical Trading
Pitchforks provide structure, but they don’t predict momentum, strength, or sentiment. For that, you need other tools. Momentum indicators like RSI and MACD, volatility tools like ATR and Bollinger Bands, and volume-based analysis all add depth to pitchfork-based charting. The best approach is to understand the purpose of each indicator, test combinations in demo environments, and develop a system that aligns with your trading strategy and time horizon. Trading is as much about knowing when not to act as it is about knowing when to pull the trigger, and the right combination of indicators can make both decisions clearer.
While the Andrews Pitchfork is a unique tool focused on price structure and channeling, most technical traders use a combination of indicators to get a fuller picture of market behavior. No single tool is reliable enough to use in isolation, and pitchforks often perform best when paired with momentum, volume, or trend-based confirmation indicators. Below, we will take a look at some of the most important indicators used across different styles of technical trading.
Volume
Volume is one of the most essential but underused indicators. It shows how many shares or contracts are being traded and helps confirm the strength behind a move. Pitchfork users often watch volume to confirm whether price respecting or violating the pitchfork boundaries is backed by conviction.
- Volume spikes often accompany breakouts or trend reversals.
- Divergence between price and volume can warn of a weakening trend.
- Volume Profile (which shows the distribution of trading volume at different price levels) is used by futures and index traders to identify areas of high interest or support/resistance.
Moving Averages
Moving averages are among the most widely used indicators because they help smooth out price action and identify trend direction. The Simple Moving Average (SMA) calculates the average of closing prices over a fixed number of periods. The Exponential Moving Average (EMA) gives more weight to recent prices and therefore reacts faster to changes. Traders often use combinations like the 50 EMA and 200 EMA to track long-term trends and crossover signals. When price consistently trades above a moving average, the trend is typically considered bullish, and vice versa.
Relative Strength Index (RSI)
RSI measures the speed and magnitude of recent price changes to determine overbought or oversold conditions. It ranges from 0 to 100, with readings above 70 suggesting overbought conditions and below 30 indicating oversold. The RSI can help confirm the momentum behind a trend and is often used to spot divergence, i.e. a point where the price makes a new high or low but the RSI does not, suggesting a potential reversal.
MACD (Moving Average Convergence Divergence)
MACD shows the relationship between two EMAs and is used to identify shifts in momentum. It consists of the MACD line, signal line, and histogram. When the MACD line crosses above the signal line, it’s typically seen as a bullish signal. When it crosses below, it’s bearish. The histogram highlights the strength of the trend by showing the distance between the two lines.MACD is often used with pitchforks to confirm that price movement toward a pitchfork boundary is backed by momentum, or to signal when a breakout may have strength behind it.
Stochastic Oscillator
The stochastic oscillator compares a specific closing price to a range of its prices over a given period. Like RSI, it oscillates between 0 and 100. Readings over 80 are considered overbought. Readings below 20 are considered oversold. It is used to identify turning points in price and is especially useful in range-bound conditions. Some traders use stochastic signals at the outer edges of a pitchfork to time reversals or exits.
Bollinger Bands
Bollinger Bands use a moving average and two standard deviation bands to gauge volatility. When price hugs the upper band, it signals potential overextension. When price hits the lower band, the asset may be oversold. Bollinger Bands can help traders understand when a market is trending strongly and when it’s reverting back to its mean. In combination with pitchforks, they offer a secondary view of overbought or oversold conditions near channel boundaries.
ATR (Average True Range)
The ATR measures market volatility. A high ATR indicates strong price movement, while a low ATR suggests quiet conditions. The ATR doesn’t show direction, it only shows the size of recent price moves. Traders use the ATR to set stop-loss levels or assess whether a trade has enough momentum to justify entry. When price is nearing the edge of a pitchfork and ATR is expanding, it could suggest a breakout or sharp reversal.
Fibonacci Retracement
Fibonacci retracement levels are used to identify potential support and resistance based on ratios derived from the Fibonacci sequence, most commonly 38.2%, 50%, and 61.8%. These levels often align with the pitchfork’s lines and can serve as confluence zones, where multiple indicators suggest the same behavior. Traders watch these levels closely for entry setups or pullbacks during trending moves.
The Ichimoku Cloud
This all-in-one indicator combines trend direction, support/resistance, and momentum. It can look complicated, but paints a comprehensive picture for traders who have learned how to use it. The “cloud” identifies future support/resistance zones, while other lines gauge momentum and trend strength. It’s more commonly used on higher timeframes and with swing or position trades, often to provide background structure before applying tools like pitchforks.
Support and Resistance Levels
While not a traditional indicators, horizontal support and resistance levels drawn manually from key price points remain one of the most reliable tools in technical analysis. They are especially effective when aligned with pitchfork boundaries or moving average levels. When multiple indicators point to the same price zone (for example, a pitchfork boundary, a moving average, and a historical support level) that area becomes much more meaningful to traders.