In this issue of Median Line Analysis, aka Andrews Pitchfork, Part #4, Further Techniques, a further technique using Pitchforks introduced by myself and my colleague Kyle Crystal of Lakeshore Technical Analysis was introduced in the STA white paper. I will show you the techniques and methods. About Median Line Analysis / Andrews Pitchfork. These include what we have coined as “Combination Pitchfork” and “Dueling Pitchfork”, which when combined provide a frequency grid of support and resistance in price and time. will be created.
Combination Pitchfork:
The author’s first example of how to analyze diagonal finding is using something called a “combination pitchfork”. In the top left panel, I applied a Schiff-adjusted pitchfork (labeled ‘a’) to the daily chart of the Aerospace & Defense ETF (ITA) using three pivots. Low at POa, high at P1a, higher at P2a. The right panel adds a second Schiff-adjusted pitchfork (labeled “b”) next utilizing his three pivots. It draws again from the low on POb to the high on P1b to the low on P2b. Then a dashed warning line is added outside the pitchfork ‘b’. His second Pitchfork reversal at R1 at the upper warning line and reversal at the upper parallel line at R2 two and a half weeks later show that he has identified the correct price/time grid. Notice here that both pitchforks pulled out from different pivots form the exact same angle. This is confirmation that we have found a dominant frequency within the price/time grid for this market. Why? refer to the following.
Dueling rake:
Once a market’s dominant frequencies are identified, technologists can take their analysis one step further with what they call a “dueling pitchfork.” This technique utilizes two pitchforks (one bearish and one bullish) to form a price/time grid. In the top left panel, a Schiff adjusted pitchfork is drawn on the hourly NASDAQ 100 index chart, from PO high (yellow) to he P1 low to P2 low. Then I added multiple warning lines. Please note that these warning lines are respected by the price. In the right panel, I’ve added a standard pitchfork (red) to the same chart, starting from the PO low, to the P1 high, to the higher low pivot point P2. Added multiple warning lines as well. These two pitchforks act from a bearish and bullish perspective, revealing a price/time grid that acts as diagonal resistance and support.
The Daily E-Mini Active Contract chart above is another example of a Duel Pitchfork, but using three pitchforks to create a price/time grid. The first pitchfork is the Schiff modified pitchfork drawn in green from PO’s late February high to his April low in P1 and lower high in P2. The second starts at the same April swing low of the PO, drawn in blue to the swing high of P1, and ends at P2. This is also Schiff Modified and is colored blue for clarity. The third is a standard pitchfork (red) pulled down from the next swing low at PO, to a higher high at P1, to a higher low at P2. The grid is now complete.
Recent price action suggests that the price/time grid is starting to change. This is made clear by the following data points: The price has breached the previous resistance and is now supported at the blue upper warning line UWL1 and the support at the lower parallel LP1 (red) has reversed to resistance. doing. Both of these developments suggest that the post-PO “price unit” or legup may have reached its limit. If there is a violation, what is the appropriate next step for this analysis? Add a red warning line to the standard pitchfork.
In the next Median Line Analysis aka Andrews Pitchfork, Part #5, Pitchforks with Momentum Oscillators, I’ll show you more techniques and methods using Pitchforks. We also share two real-time “walkthroughs”.
The charts are courtesy of Optuma, whose charting software allows users to apply, adjust, and modify Pitchfork variations and related tools on the above charts with a simple mouse click. To receive his 30-day trial version of Optuma charting software, please visit: