Andrews Pitchfork (Median Line)

That was very nice by out there! Did you take the trade?

A couple paires show respect to the AP last days. Here is one of them:

how to draww Median Line? Tq

Sell line

Sell line broke to upside creating gap

Median line. Potential sell to the gap

Here's mine

DXI wkly

Why do pitchforks work though ?
Especially with such accuracy.

In a nutshell, Andrews pitchfork is a geometric measurement tool that defines the midean(middle) line.
The median low line and the median high line are possible support/resistance areas.

I know, however what is the logic behind it in terms of microstructure ?

If you are referring to price fluctuations within, they are fractal movements that support the macrostructure.

S&P500 wkly

Pitchforks work if the tool is used properly. Most are obsessed with drawing a "correct" median line and forgo analyzing the "macro/microstructure". Probably to most analyzing structure and price action on a macro, micro and bar level PRIOR to drawing the fork seems weird but it is necessary before drawing in a median line. IMHO opinion drawing a fork first without understanding the underlying structure allowing to the tool to use you rather than using the tool. In fact one might as well be channel trading if you draw the fork first before analyzing the surrounding structure. I tend to reject the notion that Pitchforks are support and resistance and it is not actually what Andrew's taught. Andrew's had 5 main rules to follow that are the basics of using Pitchforks in one's trading. The attachment shows these but these are the bare basics.

A channel formed as price descended in this frame. One might think of this as 1/2 of a median line. The blue lines highlight the largest swings as price descended. Swings are integral to understanging median lines and plotting them will benefit your use of median lines greatly. The fact that the swing at the bottom falls outside the channel is not necessarily important since it is essentially the same size as the other blue swing.


Now we can use similar sized swings to accurately draw a meaningful median line. In this case we can see that price has zoomed passed the median line of the this fork with a WRB gap denoted by the green arrow. There was another WRB gap denoted by the orange arrow but this did not yet cause price to significantly exceed the previous channel but it did provide a clue that price might be ready to expand beyond the channel and perhaps begin to form the "other half" of the median line. One of andrew's rules says that when price zooms a ML it will often come back and retest it before moving on. Here we can see price doing just that. It's interesting to note how the WRB gaps can provide opportunity in the context of understanding how price moves and forms a median line. Please don't look at WRB gaps in isolatoin. They can provide clues both long and short depending on price action.

Median lines are formed by swings. Often a tight channel can be looked at as 1/2 of the swing. We can wait for price to expand. When it expands it can still go both ways. After expanding it can start to move back down again or it can begin to form another median line on the way up. PA such as WRBs can help us.

Redrew. I'll see if I can comment later.

The timing for the move to the 3000.00 level was perfect!

60 MINUTE BTC/USD

does this indicator work anymore,i downloaded it in script folder,its not working so far

Wow, one of the only median line blogs on FF and it's not getting any action, that's too bad. It's the only tool that really works for looking into what lies ahead for a market. So are there any other active Median line blogs here on FF?

Hey Sossos, check this one out https://www.forexfactory.com/showthr...ction+reaction