Advanced Andrews Pitchfork Charting Google GOOG

Feb 6, 2014: 12:56 PM CST

In the series of posts on “Chart Art,” let’s take a look at a confluence of Andrews Pitchfork lines into a key level for Google (GOOG) shares.

We’ll use this as a focal point for additional analysis beyond the converging lines.

Advanced Technical Analysis Andrews Pitchfork Trendlines Google GOOG stock

The chart above is the combination of four Andrews Pitchfork tools using the standard method of drawing from a swing low (for example, the $100 opening price) to a swing high (the first major 2007 “top” into $800 per share) to a final key swing low (the 2009 bottom near $300 per share).

I repeated this process using TradeStation’s default Andrews Pitchfork charting tool three additional times as drawn.  Then, I color-coded the pitchforks for clarity (so we wouldn’t see random lines everywhere).

The main idea from the chart above is to focus on the Pitchfork Trendline Cross-over resistance cluster into the current $1,200 per share level.

I zoomed-in the perspective of the Pitchfork Trendlines to get a clearer view of the current level:

Advanced Technical Analysis Andrews Pitchfork Trendlines Google GOOG stock

Interestingly, price has interacted with the boundaries of the red pitchfork as labeled.

Again, what’s more important than a single “Pitchfork” is the cluster of overlapping trendlines into the $1,200 area where price trades currently.

“Pitchfork Clusters” are similar to the concept of “Fibonacci Confluence” which I discuss frequently.

Does this mean price is required to trade lower and reverse here?  Absolutely not.

Pitchfork tools are used to set future price projection targets and to trade breakdowns out of a trendline channel, among other trading strategies.

This isn’t meant to be stand-alone analysis of Google, but a perspective beyond traditional chart analysis.

For additional reading, see my prior updates:

Relative Strength Charting Yahoo YHOO and Google GOOG

Daily/Weekly Charting the $1,000 Breakout in Google GOOG

“Sideways Range Trading Key Levels for Google”

Andrews Pitchfork Content (background):

S&P 500 Andrews Pitchfork and Gann Levels “Chart Art”

Andrews Pitchfork Update for the S&P 500

Gann and Andrews Pitchfork Update (S&P 500)

Andrews Pitchfork Trendline Channel Update on the Euro (EURUSD)

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Corey Rosenbloom, CMT
Afraid to Trade.com

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Corey’s new book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

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