Pitchfork first introduced by the Andrew's Pitchfork. This tool is rarely used by beginner traders, but professional traders are familiar with this tool.
I think Pitchfork tool is very good and helped me in determining resistance, support and the trend of a movement, and until now I still use it for trading stocks.
How do I start making Pitchfork line?
First, open your chart software, and search for "Pitchfork", amibroker and metastock features of this tool.
(Source Picture by www.investopedia.com)You need 3 points to draw it (like the example image above).
When you finish drawing a line from the 3 point, it means you will be able to determine which direction the market trends.
And in the future, this Pitchfork line can be used as a map of the price movement / candelstick.
Where Resistence and Support line
Resistence = The top lineSupport = Bottom line
So, according to the image (in the big picture) that have to do is to buy positions on the line at support and selling at the resistance line.
But not as easy as you think
You should do this, if you have a buy position in the line of support (see picture) you must have a plan like this, do stop loss if the price / candelstik, through the support line. This indicates that the new trend will be formed, the bearish trend.
When the price was near the top line / resistance lines, profit taking is a good step, or hold and do a trailing stop as a precaution when the price or candelstick, through the resistant line, which will create a new bullish trend.
Example
UNTR.JK Make new Bullish Trend
BUMI.JK Make new bearish trend
Good Luck!!!!
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