DislikedHello Kapital and all contributors on this thread, I have enjoyed reading this thread, a good discussion, brings good ideas that can help others with the use of forks, A/R lines & median lines. Below is a chart I posted recently on the EUR/CAD 240 as I was looking for a P5 Low following a nice run down into my P0/P1 Schiff P3-P4 Median Line which was one of the tools used by A.Andrews for picking major P5's. You will also notice I drew a regular P2-P3/P4 ML ( Dotted Line ) to illustrate that both downward sloping ML's were EQUALLY VALID however...Ignored
That's a nice chart. I had completely missed, at first, how it's point A starts relative to the 50%P&T (aka midpoint) from P0-P1, but still uses P3 (B) and P4 (C) for the fork. You described it. I just glossed over that detail too fast. I've never tried that. And I either never knew, or have forgotten, that technique if it was one of Andrews.
Regards to how you describe it as " P0/P1 Schiff P3-P4 Median Line to pick P5", the word "Schiff" is misused by many forkers. I don't mean to detract from your otherwise great and interesting analysis, and maybe it's a nitpicky observation, but -- as derived from a regular fork -- a "Schiff" means 50% of just price, and a "Modified Schiff" means 50% of both price & time (aka midpoint). The midpoint you used is the later, so use of the word "Schiff" has the wrong implied meaning. Best to just say "midpoint" because that -- to me -- is more clear. If it were just of price, I'd say "50% price" or "mid-price".
I'm sure of my definitions, and a long time ago, I clarified it with Tim and he agreed. Here's a couple pictures from a site (no affiliation) that has it correct: Schiff and Mod.Schiff A lot of tools improperly swap the names, and a lot of PF traders get them mixed up.
I like all the other reasons you cited for the P5 pivot formation.
So when was it you were drawing this fork that shows such a nice P5 touch to the ML. Live, when it was fresh? Or soon after? Such resonance, or sets of lines like this, do occur to me/us in hindsight, but it's the real-time anticipation of such pivots that gives the entries.
Welcome. Please give more examples. Thanks in advance.