Pitchforks create a type of trend channel. The trend is considered active as long as the price stays within the channel. Reversals occur when price breaks out of the channel. There is a center median line (trend line), as well as sets of lines above and below that median line. The additional lines are set a specified number of standard deviations away from the median... in this example, the additional lines are derived from the numbers 0.25, 0.382, 0.5, 0.618, 0.75, and 1. Each individual line represents a support/resistance level.
Note the way that price action interacts with the various lines :
Lastly, here are multiple modified schiff pitchfork channels applied :
Dude!!! Thank you! I recently started adding fib channels outside of various patterns (wedges, channels) and noticed strong reaction there as well. This will help me inside the channel too. Thanks again.
deci8el
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@deci8el, @Durbtrade, Hey man... went ahead and took a shot with it. Hope you don't mind me posting it here for you to check out.