In this article, we are drawing Pitchfork channels on AUDUSD
On the monthly AUDUSD chart, we can see that the pair is in the downside extension after breaking below the 0.7600 level, a key point of the long-term uptrend channel.
Andrews Pitchfork trading technical analysis is included in Mentoring!
Using Andrews Pitchfork tool hint: to plot Andrew’s Pitchfork on a chart, first, look for three consecutive big highs or lows at the asset’s price. These key points are highlighted in the chart below.
On the Weekly chart, the pair formed a downtrend Pitchfork channel and we have a rejection again from the key 0.7200 level. The downside resistance 0.7000 needs to be broken for the pair to extend downside into the 0.6600 half channel line. By a trading perspective, look for the short trade entries with the stop loss above the 0.7050 level targeting 0.6800 level first, and in a case of a daily close below this level look for the extreme extension lower into the 0.6600 level. Downside invalidation will come on a stop loss trigger and a daily close above the 0.7100 level.
