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.
Each individual line represents a support/resistance level.
Note the way that price action interacts with the various lines :
Pitchforks can help establish key support/resistance levels!
These levels can be used in conjunction with active price action monitoring to help identify trend continuations/reversals while trading.
// Durbtrade
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.
Each individual line represents a support/resistance level.
Note the way that price action interacts with the various lines :
Pitchforks can help establish key support/resistance levels!
These levels can be used in conjunction with active price action monitoring to help identify trend continuations/reversals while trading.
// Durbtrade
