Andrews’ Pitchfork indicator

Alan Andrews is the famous trader who developed the Andrews’ Pitchfork indicator. He never disclosed the secret of his success until he retired from trading. A secret worth keeping must have been bringing a serious profit! In this article, we will show you how to install and apply Andrews’ Pitchfork for trading on Binomo.

Setting up a template

Look at the quotations chart. If the quotes graph is rising, we will be looking out for moments to make transactions UP:

• select “Pitchfork” in the Tools tab;
• detect the moment when the graph turns upward. Click on that point;
• detect the first significant price maximum after that turn. Click on that point;
• detect the first significant price minimum following the maximum. Click on it.

Don’t worry, it only sounds difficult. Look at the screenshot below, and everything will become clearer:

If the quotes graph is falling, we will be looking out for moments to make transactions DOWN. We do the following

• select “Pitchfork” in the Tools tab;
• detect the moment when the graph turns downward. Click on that point;
• detect the first significant price minimum after that turn. Click on that point;
• detect the first significant price maximum following the minimum. Click on it.

We now have a long “pitchfork”. The middle line is the median (the line of the current trend). It is often called the “price magnet” or the “equilibrium line”.

How to make deals

Most of the time the price moves within the channel, bouncing off the upper and lower boundaries and crossing the median either from top to bottom, or from bottom to top. We will trade on the expectation of a breakthrough of the borders, since it is more difficult to predict price movement within the channel (we will definitely tell you how to do it in one of our next articles about strategies).

The deals UP are made only with a growing trend, when the candle of quotes breaks the upper boundary of the channel and closes above it:

The deals DOWN are made only with a falling trend, when the candle of quotes breaks the lower boundary of the channel and closes below it:

Recommendations

The best timeframe for trading on the breakdown of Andrews’ Pitchfork is 1 minute or less.
Deals can be opened only in the direction of the current trend!
The optimal expiration time is 1 to 3 minutes.

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