Andrews Pitchfork (Median Line)

BITCOIN vs DOW JONES INDUSTRIAL AVERAGE (the latter serving as a moving average)

Rare footage of a Dr. Alan Andrews seminar:

More rare footage of Dr. Alan Andrews:

EURGBP 60 minute chart:

Price trending down overall. Note LLs and LHs.
Last swing in the trend denoted with blue ML drawn L-H-L. Previous swing denoted with pink H-L-H ML.

Given the blue ML price projects to the ML and has not reached it yet.

Given the pink ML the sliding parallel suggests price might turn to the downside with projection being the pink A-B

Hourly gbp/usd forecast

GBPUSD 60 min

This pair has been trending down. Impulses are to down side so downtrend. Forecast is down.

The blue ML although pointing up does not suggest direction but rather projection. It is a corrective ML and thus projects the current corrective leg in this overall downtrend. Specifically MLs project so A to B projects C to D. Price did not meet the projection and thus is a Hagopian and therefore price now going down.

The pink ML is an impulse ML thus it attempts to project the next impulse which is now officially in progress.

Though the sliding parallel didn't serve as support, it later served as resistance on 2 occasions.

Hello K,
Your parallels seemed quite curved fit and lend a false impression of diagonal support/resistance. As you know I tend to reject the notion of diagonal support and resistance and really have yet to see someone trade it profitably. Most are drawing MLs that fit onto price rather than trading future price reaction to a perceived diagonal s/r.

Even with that my chart shows your parallel and it is really difficult to make an accurate parallel that is true s/r as you've shown. I drew in a line that is definitely not parallel but shows the true resistance you mention. Near the ML (center line) I drew in a parallel that does have accurate touches but it's value is really nil.

The value of MLs is not their perceived diagonal support and resistance. If you go back and look at Andrews and Babson's original work you'll find the they didn't even draw in the upper and lower parallels until much later and even then they weren't really used as s/r. Whether the lines are the center ML or the upper or lower they are to be used in essentially the same way. I don't have the main rules which were on Tim Morges websites (now gone) but here's the jist of them:

1. Price will reach the ML about 80% of the time. This is after pivots A, B and C are drawn in. D will be reached about 80% of the time.
2. When price zooms through a line it will usually come back and retest before moving on.
3. If price is moving towards a line but doesn't reach it then it will reverse and go further in the same direction.

The rules don't mention diagonals as s/r. Tim Morge did but not in the way I see everyone doing it.

In the chart below the ML shown by pivots A, B, C and D is a completed ML. This means that price has already reached the ML and reacted to the downside. Notice price did not go through the ML but reacted bearishly and so this will tend to project price back to the lower parallel ML. Trade triggers should be something other than mere touches on lines. Also note that A to B is an impulse leg. C to D was the projection but C to D is actually a new impulse in this case suggesting a possible new uptrend. A new ML should be drawn at some point using the new impulse but imho it's too early.

Those who misunderstand MLs will now continue to use the current ML as a channel and attempt to trade diagonal s/r. Most who do this fail and move on to something else believing MLs just don't work. Of course they don't work as diagonal s/r.

The current ML satisfied it's sine wave and afterwards it accurately projected price back down to the lower parallel. It is now more valid to seek another ML.

Sorry to drone on.

In the chart below I've drawn a blue ML using the last corrective swing. So far price has not met the projection which is blue A to B projects blue C to D. Even though price has violated the upper ML it does not negate the blue ML as many might think. In fact, until price exceeds a horizontal drawn from pivot B this ML remains intact. The red ML is being used here as a gauge. Price did reach the ML of the red ML but it did not zoom it and this projected back to the lower red parallel. I still think pressure is to the downside but this remains to be seen.

Hey guys,

Is there an explanation when we can take the stop on the screenshot vs. having to have a stop bellow pivot C.
Thank you.

Cheers

Pair? Time frame?
???

Is the screenshot I provided not enough information?

Cheers

You would place a stop below pivot C if you were to enter after the test that is currently being used as a stop.
The reason for the current stop is:
A) because Tim preferred a test & retest
B) because that 1st test is a confirmed HL at bar level which means there are buyers there.

Thank you.

Confidence in Pivot C is low given the information you've provided.
Segment B to C of your ML demonstrates a down-trending behavior that has not been decisively broken to the upside. Placing a stop below the assumed Pivot C is just hoping that the down trending behavior will stop. It may but waiting for more decisive price action would be prudent.
The "test-retest" methodology places one's faith in the assumption of diagonal support and resistance which is a false.

It would be nice if you provided the name of the pair and the time frame you've shown. This would allow a more comprehensive analysis.

Thanks for the reply, I took this example from Tim Morge's video found here:

Cheers

The video focused on AUDUSD,M20 chart, from a peak-hi Aug 17, *2010*.

I only have Daily bars going back that far. In context, the video is all about the area in the gray box (closeup chart), then the magenta sliver (in the zoomed out chart). I left a Fibo with IR's shown on both charts for reference, as well as a Parallel channel. After the section Morge discusses, price fell a bit further and found support at the 38.2% IR, followed by a much bigger rise for almost a year.

Today (August 15th) marks 1 year since the death of the great Tim Morge.

Thank you for your contribution to the world of trading. R.I.P.

https://www.tributearchive.com/obitu...imothy-A-Morge

Major-Minor Pitchfork Combo