(binned per thread starter’s request) Powerful is the Fork

GBPUSD60min SELL closed trade

USDJPY60 minute. Possible BUYs but selling up here is reasonable. Nothing is for sure.

Page 1 of this thread has been completely changed and updated to reflect future posts.

ML ABC formed with a violent upthrust of A-B and a relentless downtrend of B-C. Pivot C seems put in but price has been unable to reach D or the median line to complete this ML as ABCD. The gray rectangles represent sellers where it can be seen sellers in fact have pushed price down each time, note red down arrows. A new smaller ML is shown signifying the potential direction price may take out of the larger ML. The bearish PA is shown and the red rectangle represents a potential sell entry.

The larger ML is complete, ABCD. After D price bounced and PA suggested a trip to the upper ML which it did. At the upper ML price has bounced and is trending down with swings shown by the blue modified Schiff. Possible sell at the red rectangle.

This is the updated first page as of 5/14/2020. I'll be updating it and attempting to provide additional instruction on properly using median lines as a legitimate tool for chart analysis and ultimately for trading.

Update 5/142020. Starting with post #70 the thread will more reflect this update.
This thread is about trading using Median Lines (ML). MLs are also called Andrew's Pitchforks. Some call them "forks" for short.


How to draw a ML:
1. A Median Line is drawn using three alternating price pivots. Correct pivots alternate between High, Low, High or Low, High, Low. It is incorrect to use High, High, Low or Low, Low, High pivots.
2. Any three pivots meeting the described criteria can be used to draw a ML BUT in order for the ML to be useful we should choose meaningful price structure based in SWINGS to draw our MLs. Using relatively same-sized swings is a good way to begin drawing meaningful MLs.

The chart below shows swing A to B and swing C to D. They are about the same sized.
Attached Image (click to enlarge)
https://www.forexfactory.com/attachm...1&d=1589498271

Using these swings we can now draw a ML using pivots A, B and C. Once price reaches the median line the ML is complete as shown by "D".
Attached Image (click to enlarge)
https://www.forexfactory.com/attachm...1&d=1589498853

What do Median Lines do?
They attempt to PROJECT price based on the three pivots discussed above. The middle, upper and lower MLs are really targets of projections. Projections include:
1. A median line is complete once "D" is achieved but before "D" is achieved it is possible to project C to D before it has happened.
2. Once "D" has happened it is possible to project D to the upper median line or D to the lower median line using price action.
3. If after C is formed and price fails to reach the median line to make "D" then it is possible to project that price will move in the opposite direction.

What don't Median Lines do?
1. One should resist the temptation to use MLs like trend lines where one enters based on line touches. Some attempt to draw MLs superimposed on price in such a way that shows frequent touches on the lines believing this "frequency" will continue and can be used for trade entries. This is done at the expense of swing structure and negates the intention of MLs.
2. Even though a ML may be pointing up or down it does not necessarily mean that price is going to follow that direction.

This is the current 60min EURJPY which I'll use to illustrate using median lines to assist with chart analysis.

Note I'll use this time frame only for complete analysis and for any possible trade entries. It is not necessary to look at higher or lower time frames and if done would only confuse or provide a sense of false reassurance. Unfortunately many have been hypnotized by multi time frame analysis and I submit it has a lot to do with why many fail.

Also note that I don't need to zoom out further than this to see what was going on in the more distant past. I could zoom out but then the analysis would be different. The information or data that is seen here is plenty.

So to the chart. First notice that the swings are clear where A to B is a corrective swing and C to D is a possible corrective swing. C to D is only possible at this point because it will not be a true corrective swing unless price descends below C. And also because price may keep going up and possibly nullifying C to D as a possible corrective swing.



MLs are used to project price. A to B projects C to D. D is always the ML (center ML) so it is always a consideration to trade from pivot C to possible D at the ML. Note that price may not exactly follow the C to D slope exactly but that is good because the way price moves from C to D will often provide a trading opportunity as is shown in this case.

Note the purple arrow points to a WRB gap bar that took out many bars to it's left. It's close was significantly bullish and in and of itself shows that buyers stepped in. When price retraced this WRB gap bar it was an opportunity to buy with the notion that price was going to reach the ML (center ML). For sure this will not always be the case.


Price has not yet quite reached the ML and so this ML is not yet complete. If price reverses significantly then it would be considered a hagopian where price does not reach the ML and reverses and continues further in the opposite direction.

Price has currently been gapping up so these bullish gaps may represent additional opportunities to buy. Note that there are bears above and this must be dealt with in one's trading plan. At the moment price indeed bounced off the bearish gray rectangle and is now retracing a bit to test the bullish gap below. It indeed could go lower to the lowest gap already mentioned previously. Where to get long if at all is personal and should be part of one's risk vs reward. How much of a stop loss are you comfortable with? How big or small is your target?



This is an example of how I approach chart analysis and trading using and ML. In this case I have gotten in fairly close so that price to include individual bars can clearly be seen. This is also to emphasize that trades ultimately should be based on bar price action and represents confirmation...not multi timeframe analysis. It is also to emphasize that the lines are not where we look for trades. The lines or the overall ML is meant as a tool to project price and it does so from pivots. Price moves from pivot A to Pivot B to Pivot C to Pivot D and then we can go further based on price action at each pivot and also based on price action that may happen between pivots.

This is a primer on how median lines project in different ways. In this case the ML is projecting the impulse leg of this particular down trend.

Note A to B is the initial impulse leg and that B is a new low compared to the previous swing (a new low confirms a swing high). B to C is the corrective leg.

With this understanding the ML is used intentionally and not by accident. In this particular case knowing that B was a new low it is reasonable that C could be the beginning of a new impulse leg and since A to B projects C to D a trade from C to D is also reasonable if price action should indicate so.

In this way such a median line assists with trading with the proverbial trend.

Now let's look at how a median line can be used to project the corrective wave of a down trend or a potential hagopian.

In the chart below it can be seen that the down-trend is firmly in place.

A to B now measures a corrective wave and B to C is the impulse leg. Therefore C to D will be the next corrective wave which may or may not complete.

While one can potentially trade C to D knowing the high probability that D may be achieved it must be realized that such a trade is counter trend. In this case price does not reach D and thus is called a hagopian where after not reaching the median line price reverses and continues further in the opposite direction.

In this particular case the hagopian signals the beginning of the next impulse wave.

There's more here than I'm willing go into right now but combining the two can be very powerful indeed.

Something interesting

This first chart shows a median line projecting the next impulse wave. A to B projects C to D. However note that price has fallen out to the right going beyond the lower median line. Many feel this is sign that price is not "respecting" the median line and therefore it is not valid. This could not be further from the truth.

This next chart is the same median line but is modified shifted and now contains price. A modified Schiff can be used in other ways but here it is used to soften upward angle of price and as can be seen it does this very well. Note the projections don't change. A to B still projects C to D. The difference is that D is now at the upper median line of the modified schiff.


Here is the standard ML but without the upper and lower median lines. This is the way that Dr. Andrews originally drew median lines. Without the upper and lower median lines influencing one's judgement it almost seems unnecessary to have the upper and lower median lines.

Just something interesting.

EURUSD 60 minute
I'll perform an analysis using median lines.
A to B is taken out by C and so there is an uptrend. Until B is taken out to the downside the trend is up. The expectation is that price which has currently corrected may go on to make a new high. So how can we use a median line to help us with this?



Using ABC as pivots a median line is drawn. Despite the fact that the ML is pointing down we are not interested in that fact. Rather we are interested in what MLs do: they project price. A to B projects C to D!!! The hashed blue TLs show this.

The projection does not mean that C to D has to follow the exact same path as A to B. Therefore price may reach the median line before D or after D. In this case price gets to the median line before D. As discussed previously once the median line is met the median line is complete. So what next? We have to see what price does at the median line!


At the median line price bounced with a WRB gap signifying buyers and presents an opportunity to buy upon a retrace if you believe that price is going on to make a new high (exceed C). If this is the case then the projection is now from the median line to the upper median line. I like to use B1 to C as a measured projection so at the point that price begins moving towards the upper median line that becomes my projection or target.

In post 79 we showed that EURUSD 60 min is up trending based on the data shown.
A blue ML was drawn on the corrective swings and price moved to the median line completing the ML.
Bullish PA at the median line of the blue ML provided a buy opportunity. Remember we've reviewed the differences between MLs that project based on corrective swings and those that project based on impulse swings.
Lastly we showed how a projection could be made to identify a reasonable target.

Now we can see price is moving and appears to be heading for a higher high which in the context of data being used would entail price taking out blue pivot C to the upside.

We can draw a new orange ML that projects based on impulse swings and it is shown.
The orange ML is a modified Schiff because a standard ML would look to severe. But it matters not as they both make the same projection.
The projection remains the same where A to B projects C to D.
So now that we see price moving up we can entertain buying along the way.
I've drawn in another gray rectangle where price dramatically launched. This is where buyers likely are to get back in if price retraces to this area. This area also provides a decent stop.