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.
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