Andrews Pitchfork: Median Lines, Trading Channels, and Reversal Rules
Summary
The article explains Andrews Pitchfork analysis using three successive price pivots to draw a median line and two parallel channel boundaries. It treats the median line’s slope as a guide to local trend, and describes watching for price reactions at the median and parallel lines. Suggested uses include trading within the channel, interpreting breaks beyond its boundaries, drawing sliding parallels when price tracks a boundary, and using horizontal and vertical projections to estimate possible price and time targets.
It also outlines the Hagopian rule: after price fails to reach the median and crosses a parallel against the median’s slope, a trend line through the failed move can provide an entry signal. The author offers chart examples and personal interpretations, including smaller pitchforks for entries, but no systematic backtest or independent evidence establishes the claimed reliability. The discussion warns that the method can leave uncertainty about whether a move is a correction or a larger reversal, making stop placement and confirmation important.
Key ideas
- A pitchfork uses three successive reversal points to define a median line and parallel boundaries.
- The author interprets reactions at the median and channel lines as clues about trend continuation or reversal.
- A break of a parallel after price fails to reach the median can set up a trend-line entry under the Hagopian rule.
- Smaller pitchforks can help refine entries within a larger price structure.
- The examples are interpretive and do not establish robust performance through systematic testing.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.