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-   -   Abe's Median Line Thread (https://www.forexfactory.com/showthread.php?t=921073)

Abe16 Jun 10, 2019 7:50pm | Post# 21

Hello Abe, thank you for this thread. I find the subject really interesting. I knew the system of the median lines, but never took it into serious study. I 'feel' that market really moves according to inner dynamic forces. Of course it recalls me harmonic trading. But it implies so many figures, which require a long backtesting to select. I find this is much simpler. Also, it offers a not less important aspect, which is a great R:R. This allows us -probably- to recover the frequent failures (I'm currently testing it). What I also appreciate is the...
Good to have you Jack. One thing about median lines...they are not a system as many believe or erroneously assume. No back-testing needed since using median lines is a discretionary method relying purely on market dynamics. There are familiar patterns but they should never be systematized.

Abe16 Jun 10, 2019 8:17pm | Post# 22

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EURJPY 20 min chart
Nothing special here. Looking for a trip to the red median line. Price currently testing buyers up here. We'll see.
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parisboy Jun 11, 2019 2:58am | Post# 23

3 Attachment(s)
If this can help somebody here :
Mikula , Patrick - The Best Trendline Methods of Alan Andrews and 5 New Trendline Methods.pdf
Median Line study- Greg Fisher.pdf
Median Line research Greg Fisher.pdf

Abe16 Jun 11, 2019 8:24am | Post# 24

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EURJPY 20 min chart Nothing special here. Looking for a trip to the red median line. Price currently testing buyers up here. We'll see. {image}
Current EURJPY 20 min chart.
Price respected buyers and has continued to move up. I've adjusted the median lines to reflect. Price may continue to move up and if so I'll keep adjusting the median lines to follow price.
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Abe16 Jun 12, 2019 7:10am | Post# 25

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{quote} Current EURJPY 20 min chart. Price respected buyers and has continued to move up. I've adjusted the median lines to reflect. Price may continue to move up and if so I'll keep adjusting the median lines to follow price. {image}
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Abe16 Jun 12, 2019 7:34pm | Post# 26

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Abe16 Jun 13, 2019 7:06am | Post# 27

{quote} {image}
Closed it

jack-fx Jun 13, 2019 5:42pm | Post# 28

{quote} Current EURJPY 20 min chart. Price respected buyers and has continued to move up. I've adjusted the median lines to reflect. Price may continue to move up and if so I'll keep adjusting the median lines to follow price. {image}
Hi Abe, yes: this is the main 'problem' with median lines. I got stopped more and more times.
How can we face this common aspect? Re-enter again and again?
What if price takes the trend and doesn't retrace?
Do you suggest an alternative money management (say... fractional entries, martingale)?

Abe16 Jun 13, 2019 7:26pm | Post# 29

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{quote} Hi Abe, yes: this is the main 'problem' with median lines. I got stopped more and more times. How can we face this common aspect? Re-enter again and again? What if price takes the trend and doesn't retrace? Do you suggest an alternative money management (say... fractional entries, martingale)?
At the expense of sounding like I'm lecturing(which I'm not) getting stopped out is a reality of trading and it happens frequently no matter what you're trading method. I have a <50% win rate and probably my actual win rate is closer to 40%. But I'm OK with that because I don't take any trade less than a R:R of 3:1. Many of my trades go >3:1 so I can get away with a low win rate. Many traders focus on win rate rather than R:R and accept very low R:R trades and wonder why their account dwindles. But let's get to this particular trade.

I like the fact that Median lines have a 80% probability of reaching the median line. This doesn't mean that I just willy-nilly draw median lines. I look at swings and choose major swings. Some are with trend and some against. In this particular case one might say it was against the trend on this 20 min time frame. In this case I was anticipating that price might retrace after making a new high. Using median lines there is a good chance price may "retrace" back to the median line. So again in this case the R:R was 3:1 at the point of entry.
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In attempt to limit "stop-outs" I do look for confirmation. Confirmation comes with understanding price action and this is where many get tripped up. I haven't spoke alot on price action but perhaps I will in the near future. In this instance at the "C" pivot a huge WRB formed that closes <50% and has the characteristic of a "pinbar" or "tail". A light blue arrow highlights this. Some value this single bar as a signal to trade. I do not. This is followed by price coming down and a WRB gap forms designated by the purple arrow. Notice that this gap takes out a small swing with a small "tail" at the bottom of the small swing and shown by the pink arrow. This represents a "reversal of effort" or in this case a reversal of bullish effort or what some might call a "swap" (a swap from bullish PA to bearish PA). I also have some green horizontal lines drawn from this "tail". Price falls a bit then comes back to test the area between the green lines where sellers previously decided to take it down. My entry is shown by the red down arrow.

I know this sounds complicated but once you get in tune with PA it kind of become second nature. Yes stop-outs will occur but my trades are always with full knowledge of what I'm doing and what I want to accomplish. In this case a trip to the median line.
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Fractional entries and martingale are not part of my trading strategy. Only careful anlaysis then full commitment to the trade win or lose. I will consider moving my stop once price gets close to target but otherwise I essentially write the check for the trade.

Abe16 Jun 13, 2019 7:50pm | Post# 30

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EURJPY 20 min current chart

Price reached the median line and so far has not decisively breached it. I've drawn a pink median line but the "C" pivot is really still questionable as price action has not confirmed it.
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auxesis Jun 14, 2019 7:53pm | Post# 31

Very nice discussion on Median lines. Its good to see someone take the time to show the mental thought process in determining if c is valid and proper trade management.

cudos,

Abe16 Jun 17, 2019 3:06pm | Post# 32

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kicktothehea Jun 17, 2019 5:41pm | Post# 33

Thank you for sharing this Abe.
I actually just joined FF so I could subscribe to your thread instead of being a long time lurker

I also use Median Lines - and I also use them based on 2 of Andrews main rules -
Price will reach the median line 80% of the time (which logically when I discovered median lines last year it made complete sense for targets)
If price zooms through the median line it will re-visit (re-test) - which again logically helps when price rips through the ML into a support zone its a nice fade back to the ML trade

I have digested almost every PDF/You Tube video out there and "for me" the ML's just make complete logical sense for targets when entering a trade.

Abe16 Jun 17, 2019 6:41pm | Post# 34

Thank you for sharing this Abe. I actually just joined FF so I could subscribe to your thread instead of being a long time lurker I also use Median Lines - and I also use them based on 2 of Andrews main rules - Price will reach the median line 80% of the time (which logically when I discovered median lines last year it made complete sense for targets) If price zooms through the median line it will re-visit (re-test) - which again logically helps when price rips through the ML into a support zone its a nice fade back to the ML trade ...
Awesome! Looking forward to your charts!

Abe16 Jun 18, 2019 7:02am | Post# 35

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Abe16 Jun 24, 2019 11:26pm | Post# 36

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Abe16 Jun 28, 2019 9:34pm | Post# 37

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The "lines" don't signal trades and so some will say "why use them in the first place"? Such a question only reveals a gross misunderstanding of median lines and what they do. Anyway here is one of Andrew's rules and how it could have been used in a recent EURJPY 20 min chart.

When prices reverse before reaching the ML, leaving a "space", they will move more in the opposite direction than when prices were rising toward the ML.

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Fxent Jun 28, 2019 11:23pm | Post# 38

The "lines" don't signal trades and so some will say "why use them in the first place"? Such a question only reveals a gross misunderstanding of median lines and what they do. Anyway here is one of Andrew's rules and how it could have been used in a recent EURJPY 20 min chart. When prices reverse before reaching the ML, leaving a "space", they will move more in the opposite direction than when prices were rising toward the ML. {image}
Hi

Its like simmilar auto trendlines ?

Abe16 Jun 29, 2019 1:09pm | Post# 39

{quote} Hi Its like simmilar auto trendlines ?
Not really my friend. At it's most basic median lines describe a price relationship between 3 points of reference. They neither necessarily adhere to or go against a "trend".

You use the word "auto" implying median lines are drawn by the platform or an indicator. This is a mistake since such an indicator will have many limitations.

Abe16 Jun 29, 2019 2:29pm | Post# 40

Learning to trade is difficult especially with all the BS that is constantly being put out there.

While this is a thread about median lines I don't pretend to suggest that median lines are magical. In fact if you don't understand how price tends to move then the value of median lines will allude you.

Trading requires a basic understanding of how price moves, not how indicators move. Developing a set of trading rules prior to such understanding is futile.

Price moves on a bar/candle level a minor structure level and a major structure level.
Bar/Candle = minor = major (one can see the similarity on different time frames).

The vast majority of price movement occurs within swings or waves and median lines are very well suited to describing swings.

So far in this thread I've sought to present real examples, some of which have been live, of how median lines can help with one's trading. The charts I've shown often show potential or actual entries. Additionally I've often described the price action that directly led to the trade. Some have failed and some have succeeded.

I know there are a some other median line or action/reaction threads here on FF but I don't see any of them providing meaningful instruction or examples of live or demo trades. And I don't see how profound quotes are going to help you with entries, exits and stop losses.

I actually want to help you. Certainly one needs to study, look at historical charts and think but I'm not going to just leave it at that. I will continue to provide precise charts with details of trade entry, target and stop loss. Although I will post historical charts I will also post live charts with either ongoing trades or anticipated trades.


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