The key to making good investments is to be absolutely open and honest and use the Andrew’s Pitchforks, and if possible, confirm with the Ichimoku. That is my opinion for what it is worth. What do you think?
Andrew’s Pitchforks is a technical indicator that uses three parallel trendlines to identify possible levels of support and resistance. The trendlines are created by placing three points at the end of identified trends. This is usually achieved by placing the points in three consecutive peaks or troughs. Once the points have been placed, a straight line is drawn from the first point that intersects the midpoint of the other two.
The Ichimoku Cloud is a versatile indicator that defines support and resistance, identifies trend direction, gauges momentum and provides trading signals. (In Japanese the name of this indicator translates into "one look equilibrium chart".) With one look, analysts can identify the trend and look for potential signals within that trend.
Our comment is that Andrew’s Pitchforks is a way to draw trend channels (support and resistance lines) in a slightly different way than we do by connecting the local bottoms or tops. We believe that by doing the latter we can create more accurate targets, so it seems that adding Andrew’s Pitchforks into our arsenal doesn't provide much additional gain, as it is just a slightly different way of doing what we do anyway. Naturally, you can use it along with our analysis or utilize it in any other way – it’s perfectly fine with us.
Similarly, the Ichimoku Clouds are another way to approach the moving averages. Again, moving averages is something that we have been using ourselves and we believe that this way of "slicing the data" is already being taken care of. By using both moving averages directly and through Ichimoku techniques, we would be doubling the emphasis for this particular approach (and thus giving relatively less weight to trends, indicators and cycles). Similarly to the case with Andrew’s Pitchforks, the final decision is up to you.
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