Andrew's Pitchfork - median line technique

Author: karla2010

Creation Date: 5/23/2011 7:58 PM

Wealth Lab » Wealth-Lab Developer/Pro » Andrew's Pitchfork - median line technique

karla2010

5/23/2011 7:58 PM

This has probably been requested before but I did not turn up anything under search.

Any thoughts about adding this, like the fibonacci button on the right hand tool bar?

Eugene

5/24/2011 1:16 AM

Before you, there was just one request since 2008: Andrews Pitchforks (the first 4 replies).

Cone

5/24/2011 4:21 AM

Let me see if I can knock that out in a script. I just learned what it was all about, and seems interesting... could be an idea for a TSL article. :)

Instructions:
1. Works for linear charts only (not Semi-log)
2. Paste, compile, and save the script
3. Enter the bar numbers for points 1, 2, and 3 in the Strategy Parameters. (Don't use the sliders, instead click the parameter link to enter the bar number by hand.)

Code assumes Bar 1 is the origin, Bar 2 is the closest bar to Bar 1, and Bar 3 is the furthest from the origin.

CODE:
Please log in to see this code.

Size:

Color:

Instructions: 
1. Works for linear charts only (not Semi-log)
2. Paste, compile, and save the script
3. Enter the [i]bar numbers[/i] for points 1, 2, and 3 in the Strategy Parameters.  (Don't use the sliders, instead click the parameter link to enter the bar number by hand.)

Code assumes Bar 1 is the origin, Bar 2 is the closest bar to Bar 1, and Bar 3 is the furthest from the origin.

[CODE]using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;

namespace WealthLab.Strategies
{
	public class AndrewsPitchFork : WealthScript
	{
		StrategyParameter _b1;
		StrategyParameter _b2;
		StrategyParameter _b3;

public AndrewsPitchFork()
		{
			_b1 = CreateParameter("Bar 1", 100, 10, 5000, 100);
			_b2 = CreateParameter("Bar 2", 120, 10, 5000, 100);
			_b3 = CreateParameter("Bar 3", 140, 10, 5000, 100);
		}		
		
		protected override void Execute()
		{
			int b1 = _b1.ValueInt;
			int b2 = _b2.ValueInt;
			int b3 = _b3.ValueInt;			
			
			double y1 = Low[b1];
			double y2 = High[b2];
			double y3 = Low[b3];
			
			DrawCircle(PricePane, 3, b1, y1, Color.Black, Color.Black, LineStyle.Solid, 2, false);
			DrawCircle(PricePane, 3, b2, y2, Color.Black, Color.Black, LineStyle.Solid, 2, false);
			DrawCircle(PricePane, 3, b3, y3, Color.Black, Color.Black, LineStyle.Solid, 2, false);
					
			// Find the median point (bar, value) between b2 and b3
			int bm = (b2 + b3) / 2;
			double ym = (y2 + y3) / 2d;
			DrawCircle(PricePane, 3, bm, ym, Color.Blue, Color.Black, LineStyle.Solid, 2, false);
			
			// Draw the c/L into the future 		 * Assumes Linear Scale, not Semi-Log! *
			int bf = Math.Min(Bars.Count - 1, b3 + 3 * (b3 - b1));
			double yf = LineExtendY(b1, y1, bm, ym, bf);
			DrawLine(PricePane, b1, y1, bf, yf, Color.Gray, LineStyle.Dashed, 2);
			
			// Draw the other lines, first find slope
			double m = (ym - y1) / (bm - b1);
			
			
			// equation of a line (linear scale) ->  y = mx + b
			double yf2 = m * (bf - b2) + y2;
			double yf3 = m * (bf - b3) + y3;			
			DrawLine(PricePane, b2, y2, bf, yf2, Color.Gray, LineStyle.Solid, 2);
			DrawLine(PricePane, b3, y3, bf, yf3, Color.Gray, LineStyle.Solid, 2);			
			
		}
	}
}[/CODE]

karla2010

5/24/2011 9:06 AM

Cone,

Thanks for the code.

Seems like a perfect toolbar application like fibonacci.

Click extreme points A,B,C and median line with guides appear.

Admittedly, I find it sometimes useful to look at fibonacci, but never make a trading decision based on it. Likewise for Andrews. I use it more like a guideline how others might be thinking or reacting to price.

Cone

5/24/2011 10:53 AM

I've collected 5 or 6 ideas for new drawing tools, and I'll add the pitchfork to the list. Someday I'll learn how to create drawing tools and knock them all out.

Ray60

6/12/2011 9:05 PM

Robert,

If you do get around to creating a drawing tool for the Andrews Pitch fork I hope you will add the ability to add additional tines. I have been manually creating pitchforks using the Fibonacci tool and trendlines. This is a picture of a manually created fork on the recent Dow with the sell off finding support at tines drawn through the 75% Fibonacci level. It would be great if you could put in the ability to enter the tine levels in a similar way the Fibonacci retrace levels are entered on that tool.