-

It's all about hunting pips 
by study & strategy,
not by guessing or gambling

The Best Trendline Methods Of Alan Andrews & 5 New Trendline Techniques

 

Median Line Trading Principle 4

Another observation Andrews made about the Median Line deals with situations in which the

price fails to reach the Median Line. In these situations, Andrews observed the price reverses direction

and moves a greater distance than the size of the previous swing. This observation can be used to set

a price target after the price fails to reach the Median Line.

Median Line Trading Principle 4: If the price does not reach the Median Line, the price moves in

the opposite direction more than the previous swing size.

The chart on this page shows June 2002 Eurodollar futures. This chart shows a Median Line

drawn using pivots A, B, and C. After pivot C, the price falls but fails to reach the Median Line. After the

price fails to reach the Median Line, the first price target is the high price at pivot C. This chart shows

that the price moved back up above the price target at pivot C.


The Pitchfork (Upper and Lower Parallel Lines)

The chart on this page shows a Median Line drawn using pivots A, B, and C. After drawing the

Median Line, Andrews added 2 parallel lines starting from В and C. This creates an upper parallel line

and a lower parallel line. The three lines on the chart below make what is now known as the Alan

Andrews Pitchfork. As far as I can determine, Andrews never used the name Pitchfork. It is included in

this book because the term is widely applied to the lines and is well known.