Part 3, Other Construction Basics, will introduce other tools developed by Dr. Alan Andrews and his students.
Warning lines are parallel lines drawn outside the original fork lines. They are drawn equidistant from the midline and the “teeth” or parallel lines of the fork.
I slightly changed the labeling of the table above and those that follow from PO (point of origin) to P3. I applied to the table above, two upper and two lower warning lines (green dotted lines) to the table that was posted in our last tutorial blog. There is no longer any doubt as to the validity of the trend or frequency, as shown by the green circles. It is important to emphasize that in Pitchfork analysis, minor violations on an intra-day or closing basis are not crucial to the spirit of validity.
In addition to warning lines, internal lines can also be drawn.
As shown in the Schiff Pitchfork example above drawn on the S&P 500 Daily Index chart, the inner lines are drawn at the same angle midway between the parallel lines and the center line of the Schiff fork. I drew the internal lines in red for clarity. Prices have respected support at both the lower internal line and the upper internal line on several occasions. I should also add that as long as the inner lines are drawn at the same vector or angle of the fork, they can be drawn by trial and error at any spacing between the midline and the upper and lower parallels. Some analysts use Fibonacci ratios.
Sliding parallels (SP in the example above) are lines drawn parallel to the midline. They can be drawn between the upper and lower parallels or outside the fork boundaries (an example of an outer sliding parallel is shown below. They always share the same angle and represent internal and external support and resistance. Looking closely at the chart above, readers will notice that the sliding parallel (blue line) is very close to an inner 50% line.
Our next example focuses on an additional confirmation tool used in midline analysis. This technique was introduced to Dr. Andrews by one of his course members, a Mr. Hagopian. On the chart below, the first Hagopian line (H1) is drawn from the point of origin (PO), or the first chosen price pivot, to P2 or third lower price pivot. The second is also pulled from the PO but this is pulled towards P1, the second chosen price pivot. Both are drawn in blue).
To paraphrase Dr. Andrews, when prices fail to return to the midline (which studies claim happens 80% of the time), a reversal may be on the horizon. In the chart above, price has slowed to the inner 50% line, reversed, and crossed above the upper parallel line. The reversal is confirmed by price trading on the upper Hagopian line, labeled H1.
Swing parallel lines
Swing parallel lines are lines drawn on the fork parallel to the base or swing line (in the example above, P1 to P2 of the modified Schiff fork in green). In this case, we have not extended the back of the fork to better identify the fork handle. The distance will be the same as the handle length of the fork (highlighted in orange). These swing parallels, SP1 and SP2, further identify support and resistance points on the price grid.
In the next Midline Analysis, AKA Andrews Pitchfork Part 4 Other Techniques, I will share other techniques and methods using Pitchforks. These include what we have called “Combined Pitchforks” and “Duel Pitchforks” which when combined create a price and time frame support and resistance frequency grid (which we show below). above). We will also present forks used in concert with the Momentum and Elliott Wave oscillators.
The charts are courtesy of Optuma whose charting software allows users to apply, adjust and modify variations of Pitchfork and related tools in the charts above with the click of a mouse. For a 30-day trial of Optuma mapping software, visit