In the late thirties a Dr. Andrews developed what he called his “median line” theory, which later evolved into a price pattern known as Andrews’ Pitchfork, because it resembles the shape of a pitchfork.
To use the Hourly Pivot Lines indicator, you must construct a multi-data chart with a 5-minute chart as Data1 and a 60-minute chart as Data2. (To create a multi-data chart, you must first create a new chart window containing a 5-minute chart. Then, without leaving that chart window, click on “Insert” “Price Data” and select a 60-minute chart of the same price data. Check the “Plot Options” section in the bottom of the Insert Price Data window and uncheck the box marked “Replace Selected Price Data.” Then click on “Plot”. In the “Format Price Data” window, click on the “Properties” tab and set the “Subgraph” box to “Hidden” for Data2.
This study automatically detects the most recent swing high and swing low of a price chart and plots a series of lines on the chart representing the 38%, 50% and 62% Fibonacci retracement levels from the most recent Swing High/Low to the lowest low/highest high of the current swing leg. The amount of price reversal required to define a swing reversal, and therefore the sensitivity of the system, is controlled by the input variables TICKCHG and PCTCHG, as described previously.