Pitchfork is a drawing tool that is popular in technical analysis. There are three basic components of a pitchfork. There is a center median line (trend line) as well as two more sets of lines above and below that median line. The additional lines are set a specified number of standard deviations away from the median.
A pitchfork is created by first drawing a trend line between two extreme points. A third point is then set either above or below the second point depending on the analyst's desired pitchfork location. Keep in mind that the default pitchfork setting calls for two additional sets of lines to be drawn. Tradingview allows for up to 9 sets of lines to be added. If additional lines are added, the user can save this setup as a template for later use.
The basic idea behind the use of a pitchfork is that it essentially creates a type of trend channel. A trend is considered active as long as price stays within the Pitchfork channel. Reversals occur when price breaks out of a Pitchfork channel.
HOW TO USE IN TRADINGVIEW
- Navigate to https://www.tradingview.com/
- On the landing page, enter a symbol and click "Launch Chart"
- Drawing Tools are located along the left hand side of the chart. Select the Drawing Tool that you would like to add to your chart.
- You can access the Formatting Window by right clicking on the Drawing Tools in the chart itself and selecting "Format".
Can change the color of the median line as well as its thickness and style. The option to set a one color for all lines is also available.
Can toggle the visibility of additional lines. Can also change their color, thickness and line style. The option to set a one color for all lines is also available.
Can toggle the visibility of background colors as well as change their opacity.
Allows for the precise placement of the pitchfork's first point (Price 1) using a bar number and price.
Allows for the precise placement of the pitchfork's second point (Price 2) using a bar number and price.
Allows for the precise placement of the pitchfork's third point (Price 3) using a bar number and price.