Channels
Trend channels and Andrews’ Pitchfork.
Channels frame price between parallel boundaries so you can trade the edges and spot breakouts.
- Parallel Channel — draw a trend line, then set the channel width; both rails stay parallel. Buy the lower rail, sell the upper, watch for breaks.
- Flat Top / Bottom — a channel with one horizontal rail, for ascending/descending triangles and ranges with a flat boundary.
- Andrews’ Pitchfork — a three-point median-line tool that projects a central trend line with parallel support/resistance forks. A classic for trend trading.
How to read a pitchfork: price often gravitates to the median line. The outer forks act as dynamic support/resistance; a strong rejection or break of a fork is the signal.