Pitchfork analysis 101

Updated: Aug 8, 2020

Let us start from the beginning.


Pitchforks are made from plotting the swing highs and swing lows of price action. We can also refer to these extremes as "zigzags".






Now what you can do is manually plot a pitchfork as follows, where you can anticipate the resistance and support of the next zigzag.



We see how we've created a pitchfork by applying it to the zigzag high and low?



An example how the pitchfork can be used for supports and resistances.


Clearly, we see price is in an uptrend with these nice supports below. We can think of the median line as a magnet.


To add a layer of confluence we will introduce another type of pitchfork called the "Schiff Pitchfork"


These are generated by plotting the anchor on the halfway point of the zigzag, as follows:





See how the Schiff pitchfork has it's own unique anchor halfway on the zigzag? And by doing so, has created a really powerful channel...


Please also note how the lower Schiff fork acts as turncoat support, and now resistance (see yellow circle)


ZUP indicator will calculate this for you exactly... No manual intervention, nor any human error involved.


https://www.mql5.com/en/market/product/19758


There's the link for the ZUP indicator, Metatrader 4 only, and it does come with a price tag, but it is very worthwhile..


Hope it helps explain why I use both the main and Schiff pitchfork (for confluence purposes).



Let me know if you have further questions.


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