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 chart shown here makes it clear why this indicator is called a
pitchfork. The first point drawn on the chart will make up the handle, while
the lines extending from the other two points will make up the tines.