When plotting out the Andrews pitchfork indicator in an up-trending fashion, it is best to remember this method Low-High-Low. Check out our service to learn more about stock trading. Setting your stops at either the major support can help manage risk.Īlso waiting for the pattern to retrace to these levels can be a great time to buy so you can maximize your return on investment. Planning your profit taking around these signals will help to take the emotion out of the trade. The color helps to see what quadrant the current price action is holding the pattern. In some representations these will be colored much like the Ichimoku cloud. Stock market trading is a battle of buyers and sellers which is one of the stock trading basics.Īs a result, the market gets choppy along with forming important levels of support and resistance every seasoned trader pays close attention to. This pattern can also be configured with median lines between the main lines It accomplishes this with an upper and lower lines surrounding a “median” line, this configurations shows a pitchfork pattern to use as guidance. It is very similar to standard trend lines in the fact it helps to give direction of probable support and resistance.
0 Comments
Leave a Reply. |