Andrews pitchfork is a tool developed by Dr. Alan Andrews for price forecasting. Andrews’ pitchfork was originally called the “Median Line Study” as it is based around a center line named the median line. The method was formed around a line drawn on a price chart after three alternative pivots in price had formed. The line is drawn from the first pivot through the midpoint of the next two pivots, and extended. Andrews observed certain price behavior as price approached the line – and especially that price tended to change trend at or near the line.
Andrews determined there was a high probability price returned to this line after the third pivot (P2 below).
Although Andrews determined price often returned the latest Median Line, he realized price did not always act as expected and defined instances where price failed to reach the line as price failures.
Andrews also determined the Median Line could be used as an indicator of price trend. The beauty of the method is its simplicity. The line can be applied to a paper price chart by using a ruler and pencil, or applied using charting software.
Andrews’ method later became known as Andrews’ pitchfork. Andrews’ pitchfork is a drawing tool found in many of today’s charting software, so named because it resembles a farmer’s pitchfork. Andrews’ pitchfork is a simple construction consisting of three parallel lines; the middle line, or Median Line, and two outer parallel lines. Many are aware of the tool, but few understand its use.
Some have found pieces of the limited amount of information available on Andrews’ methods, and have tried applying them without understanding what IT IS and what IT IS NOT.
Those familiar with Andrews’ work know that he determined prices tended to change trend when they reach the Median Line. Many expect prices to reverse at this line every time without fail, and quickly dismiss the method when they find out it does not. Andrews determined the line could indeed be used to signal a change in trend, BUT according to his course, …under specified conditions. So, apparently there is more to it than that.