Andrew’s Pitchfork

A technique that creates a channel using 3 points. It was developed by Dr. Alan Andrews.

(Bullish Channel)
Point A is placed on a bottom of a bull rally.
Point B is placed on the top of a bull rally.
Point C is placed on the bottom of the correction.
Once those points are placed, the trading platform will draw 3 parallel lines with an ascending slope which looks like a bullish channel.

Generally a buy signal appears when the price touches the lower line.
If the price touches the upper line, it tends to be a sign of a sell.

(Bearish Channel)
Point A is placed on a top of a bear rally.
Point B is placed on the bottom of a rally.
Point C is placed on the top of the correction.
Once those points are placed, the trading platform will draw 3 parallel lines with an ascending slope which looks like a bearish channel.

Generally a sell signal appears when the price touches the upper line.
If the price touches the lower line, it tends to be a buy signal.