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-   -   Andrews Pitchfork (Median Line) (https://www.forexfactory.com/showthread.php?t=76597)

Jami May 15, 2019 11:58am | Post# 7941

Abe16, from the pics you posted you are clearly not using the median lines method properly, those are not trade setups..
It depends very much on your definition of "properly". I think Abe has a very good understanding of the principles of median lines and once one is "properly" grounded in the theory, then the rest is art.

Abe, excellent work on the gap and tail. Keep it up.

Abe16 May 16, 2019 12:16am | Post# 7942

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Overall Context sellers in control.
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Price failed to make a new low. Median lines of both medians are holding so far. Bulls need to takeout large gap to left before I'll buy this. Green arrow was a tempting buy but passed on it.
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Abe16 May 19, 2019 12:17pm | Post# 7943

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Descending blue modified schiff showed path of price down. Orange modified schiff shows new path of price after breaking up through the blue median line. Price retested the back side of the blue median line. The orange median line is following the path of price upward and one can see the higher lows and higher highs and trade opportunities. Notice I did not say the price is respecting the orange median line. I don't advocate trading median line touches but rather using them to highlight where price is at. All trades should be taken using PA that highlights where buyers and sellers may lurk. Then confirmatory PA in the chosen direction prompts the trade. Not the lines
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A little messy but this shows what I'm talking about. The pink down TL shows selling on that line. A break above that TL shows buying effort. Price expands and a green median line highlights this expansion. Price comes back to the green center median line and here a lower high is expected. Price prints a wrb that takes out bearish effort and a move back into the wrb provided the buy signal.
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Abe16 May 19, 2019 6:54pm | Post# 7944

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Current USDJPY.

The green modified schiff median line is projecting price up. Modified schiffs tend to act like channels. The red standard median line is projecting price down. Both median lines are drawn from the same pivots. When using a standard median line the distance from A to B projects a potential C to D where D is the center line of the median line. Regarding the modified schiff D will be its lower median line.

Many will notice that D represents an area of confluence and some tend to get a bit excited about this. Price does what it does and it could care less what fancy lines are drawn. The lines are just a way for traders to follow and better understand what price is doing. Nothing more nothing less. Some probably would disagree.


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Abe16 May 19, 2019 7:30pm | Post# 7945

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Current EURUSD 20 minute chart.

A to B1/B2 is the largest confirmed swing in this most recent down-trend. The red modified schiff median line is projecting price downward and the green standard schiff is projecting price up.

Andrews says price will reach the (center) median line about 80% of the time. Currently it is a bit early to draw in the green up median line but this can easily be adjusted if price moves down. Knowing that price tends towards the center of any median line is powerful. Knowing when to trade with this fact can be difficult.
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Abe16 May 20, 2019 8:07am | Post# 7946

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Descending blue modified schiff showed path of price down. Orange modified schiff shows new path of price after breaking up through the blue median line. Price retested the back side of the blue median line. The orange median line is following the path of price upward and one can see the higher lows and higher highs and trade opportunities. Notice I did not say the price is respecting the orange median line. I don't advocate trading median line touches but rather using them to highlight where price is at. All trades should be taken using PA that...
USDJPY 20 minute current
Big ABCD represent the major swing and little abcd the minor swing (ML not shown to keep it clean). Price approaching d where there was previous buying pressure.
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Abe16 May 20, 2019 4:55pm | Post# 7947

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USDJPY 20 min chart.

The PA of of d was lackluster. Now looking at PA from wrb gap where the red arrow is. 3:1 trade minimum so we'll see what evolves.

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Abe16 May 21, 2019 7:42pm | Post# 7948

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New 20 min USDJPY chart.

Considering selling here. 3:1 trade easy.
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Abe16 May 21, 2019 8:33pm | Post# 7949

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New 20 min USDJPY chart. Considering selling here. 3:1 trade easy. {image}
Bear engulf of tail. Looking for retest for entry then trip to the median line.
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Abe16 May 21, 2019 9:26pm | Post# 7950

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{quote} Bear engulf of tail. Looking for retest for entry then trip to the median line. {image}
Went in market. TP and SL shown.
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Jami May 22, 2019 8:35am | Post# 7951

{quote} Went in market. TP and SL shown. {image}
Nice execution Abe, good read of price flow, personally I would have placed the stop above the C pivot . Nevertheless, still a beautiful read of all the meaningful structure. I enjoy your charts, keep them coming.
A question, do you employ a trailing stop or do you allow the market to either hit your target or your SL?

Merka May 22, 2019 10:04am | Post# 7952

@abe
Is there any particular reason for using M20 charts instead of the classic M5 M15 M30 etc....

Abe16 May 22, 2019 8:31pm | Post# 7953

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{quote} Went in market. TP and SL shown. {image}
Update. Getting ready to hit target.
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Abe16 May 22, 2019 8:33pm | Post# 7954

{quote} Nice execution Abe, good read of price flow, personally I would have placed the stop above the C pivot . Nevertheless, still a beautiful read of all the meaningful structure. I enjoy your charts, keep them coming. A question, do you employ a trailing stop or do you allow the market to either hit your target or your SL?
Thanks Jami. Appreciate your kind comments. I don't trail but at this point I'll move my SL to at least BE.

Abe16 May 22, 2019 8:35pm | Post# 7955

@abe Is there any particular reason for using M20 charts instead of the classic M5 M15 M30 etc....
MT4 has influenced what many think are "classic" time frames. Fact is there are many other platforms and the time frames offered are diverse.

Abe16 May 22, 2019 8:53pm | Post# 7956

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EURUSD 20 min.

Red downsloper is a modified schiff which as stated earlier is really a channel. Green upsloper really adds nothing at this point. I don't really use this much data when ready to enter but more for overall context. As price develops will hone in clarify. There is a line of buyers at the gray horizontal rectangle and seeing what price does in this area will likely be telling.
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Abe16 May 22, 2019 9:06pm | Post# 7957

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GBPUSD 20 min.
No trade but wanted to point out frequent occurrence in markets. This is a "V" (I know an upside down V). It is analagous to what many call pinbars. I call 'em tails. Pinbars do not indicate a reversal as many suggest and trading them blindly as such is a losing game in the long run. Vs usually have a price coil before and after (not always) and the key is to be patient and see what happens when price comes out of the coil after the V. In this case price bolted downward. The largest WRB gap bar on the way down was juicy for a short but it's hindsight. However it is worthy to take note of this structure, study it and be patient when it happens.
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Abe16 May 22, 2019 9:36pm | Post# 7958

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USDJPY 20 min.
Target hit for about 35 pips.
Wiped the chart clean and started over. Price hasn't quite made it to the median line (center line) but is approaching area of previous buyers. Overall context is up.
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Abe16 May 23, 2019 9:04pm | Post# 7959

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Abe16 May 24, 2019 10:44pm | Post# 7960

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When using median lines it helps to develop a routine. First thing I do before drawing any lines is look at swings. Swings are the most crucial element in properly using median lines. Randomly drawing in median lines will just lead to frustration. Draw them with purpose.

In this case the blue upsloper is drawn using a large swing in the uptrend. I label the pivots. It's a modified schiff and thus as said before it acts like a channel. Using the same pivots the orange downsloper can be drawn in. Price falls out of the blue downsloper and proceeds a bit later to the orange median line (center line). This is due to the slower rate of fall of price. It bounces off the orange median line then tests the backside of the blue. PA here suggested price might descend and it does. Once it definitively crossed the orange median then a price projection to the lower median line is possible which it does in this case.
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Bar level price action is usually my preferred method of entry when macro level action plays out. PA at the backside of the blue median line: The red arrow at left points to a wrb bullish gap which represents bullish effort. Price eventually takes it out. Later a bullish pinbar or tail occurs representing more bullish effort. It also gets taken out by a wrb outside bar. So there is significant bullish effort being overtaken by bears. A pullback into the tail offers an opportunity with a reasonable stop. Target becomes the lower median line.
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