How To Use Andrew's Pitchfork To Find Head And ShouldersHere's something I've been using recently with andrew's pitchfork. If you use a 2x extension on the width rather than the pitchfork itself, then it often defines a trend line which helps to identify a head and shoulders pullback.
Ideally the head will go deep into the extension and then the right shoulder tags it after a retrace. The idea is the trade is entered very close to finding the right shoulder, such as using momentum confirmation.
On this chart the right shoulder is found using the RSI curling back upward. Additionally the candlestick signal on the volume indicator finds a bullish green trend bar.
It also is confirmed by the parabolic SAR reversal.
The pitchfork is constructed by finding a sharp movement in the opposite direction of the trend. To find the center point of the pitchfork you using andrew's rules you typically pick a major swing reversal.
I often will instead use linear regression to find a slope that fits the overall trend and make the center line parallel to that rather than having the slope be very dependent on a single trade on the chart. However in this case using the swing low worked for the setup.
This example is a tweak of the chart from "Tata Power: Nice Short-term Opportunity" by techtrail.
