Andrews Pitchfork

The speaker reviews the crash of the 2008 stock market and how the Andrews pitchfork and how the "warning line" predicted the exact bottom in the markets.  He also cited divergences building with a failure to penetrate the sliding parallel. 

When the market broke below the "reaction line", the market collapsed. 

The speaker provides an introductory course on the median line and the Andrews pitchfork.  Using forex pairs, he illustrates the power of the median line in providing major support or resistance on the price chart.  Additonally, he discusses the importance of the the two outer lines in the fork, called the action/reaction lines.  The andrews pitchfork is assembled by using three consecutive swing points, starting with the most recent and moving backwards.  

Furthermore, the speaker discusses the importance of drawing a sliding parallel line to the first swing point in the pitchfork. 

The video provides an detailed overview of the andrews pitchfork technical indicator.  The video first begins by explaining how to add this tool to your charts using metatrader 4.  He then moves on to describe that three consecutive swing points are necessary to draw the pitchfork.  The median line of the pitchfork is very important; if prices fail (or find support at this level), it is likely that the trend will reverse in the opposite direction. 

The speaker illustrates the practical application of this technical indicator and how it is able to spot important support and resistance levels.