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. GoCharting allows for up to six 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.
In Style property dialog it is possible to change the appearance of a Pitchfork:
Sets the color, thickness and style of the Pitchfork’s median line.
Checkboxes on the left toggle the visibility of additional lines. Toggles beside sets the lines’ color, thickness and the line style.
Use this drop-down to select one color for all the lines and the background of the pitchfork.
The checkbox toggles the visibility of the pitchfork’s background and the slider beside adjusts its opacity.
In Shape properties dialog you can set precisely the position of the Pitchfork’s end points on the price scale (by setting the price) and the time scale (by setting the bar number):
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.
In View properties dialog you can switch displaying of the Pitchfork on charts of different timeframes: