Since April 25, Bitcoin has been trending in this pitchfork. Andrew’s Pitchfork is used to provide support and resistance levels. In the center is a red median line. The above blue line acts as a resistance while the blue line below acts as a support. So how do we draw it? First, you need to look at where you had a trend reversal. We used an elliott wave count to determine this reversal earlier this month. We first use the end of the previous trend (V) then connect this with your next swing high (i) to next swing low (ii). Using these three points with your pitchfork indicator will create your trendline channel.
How do you trade a pitchfork? If you are looking to trade a break out, you would be looking to go long once we break above the trendline. This is documented on the chart. Or you would go short once we break below the lower support line in blue. You can also trade inside the pitchfork, buying along the support blue line and selling near the top blue resistance lines. Notice how along the pitchfork support and resistance lines you also have long candlestick wicks? Wicks show support and resistance levels as well. Always do your own TA and manage your risk with stop losses. Have a great day!