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Andrews pitchfork Forex indicator to automatically build
Alan Andrews, as it not rarely happens, have received the diploma of the engineer, and then drew attention to the financial markets. His observation, which later evolved into graphical representations, it is difficult to overestimate, even after many decades. The author of the method introduced in trade good for us to familiar elements of physics, by creating a tool that you can use to trade with the trend, and contrarreloj work.
Andrews ' Pitchfork famous graphical construction, is characterized by its simplicity and at the same time, demonstrates the current market situation. Just a few straight lines in a certain way, and we have a complete trading system that can be considered self-sufficient.
With conventional forks, which made working in the garden or to frighten the evil spirits, "Andrews ' Pitchfork" have very little in common. To build on the chart, they're easy enough than You are now and learn.
The rules for constructing Andrews ' pitchfork
Construction begins, typically, when the first signs of a reversal of the current trend. The illustration below shows that the market showed a bullish trend, then there is an increase. Further all is simple, when the low falls below the previous (or the maximum below the previous in a growing market), then we begin to engage the markings.
On the chart marked local maximum and minimum (point 1 and 2), through which the parallel line. The median line starts with a basic maximuma if the reversal of the market's going down, like the picture above (with the change of trend up - the situation is completely opposite).
To make it easier to carry out parallel lines down the channel Alan, you can use the standard tool of the terminal MetaTrader4.
It is sufficient to indicate on the chart the points through which must be a line drawn, as you will have your own Andrews ' pitchfork. The process is simple, but there is still an indicator that You can download at the bottom of the review.
The building is finished, and then have to learn how to use a pitchfork Alan Andrews to trade. Here are mentioned various channel methods of work, so nothing complex is not expected.
Trade on Andrews ' pitchforks
The author of the method argued that the price in 80% of cases is reflected or from the midline or from the channel, returning inside (or to the limit for the case of rebound from the median). In other words, will have to work on the rebound from bounds, and only strengthening of the prices out of the channel will signal a new turn of the market.
We list the observations of Alan and his followers:
• if the price goes to the midline, it is very likely Rastorgueva (the market rarely in one fell swoop hit the median, often staying near it for a while);
• if price reaches one of the boundaries of the channel, the more likely is the price reversal to median;
• sometimes the price "pierces" the border, but most often it is a good moment to open operation at the return rates to the channel. If the price is consolidating outside of graphical representation (for example, closed two candles - breakout and following it), then you can consider the option of reversal of market trends.
Notice that the candles outside the building should not just shut down, and to be the same color, e.g., white (growth) in the breakdown of the upper boundary of the downward sloping. Of course, if there is a breach of boundaries in the direction of inclination of the channel, then it is a clear signal for the deal in the direction of the price returns back to the Andrews ' pitchfork.
When manually constructing some traders mark as reference points, for example, extremes on moving averages. If the use of a special indicator, such opportunities will be gone. In another, hand-off automatic build is almost the same.
Download for free the indicator "Andrews ' pitchfork":
Andrews ' pitchfork is a convenient and effective tool to trade on the financial markets. No matter whether You need to work on Forex, to trade futures on the stock exchange or will be engaged in the commodities market, but this plot still remain relevant.
|Category: Forex | Added by: (05.11.2017)