Can you recall a time when you learned something that left you feeling compelled to know a lot more, because you knew that it would get you to where you wanted to go?
As you read this article, you will most likely have that feeling again. If you could easily forecast that a stock or index would make a powerful move in a specific direction during the next 10 or so candles, would that be useful to you? Would you be able to make money with that? If you could forecast the next five or 10 candles would you be more successful with technical analysis?
If you answered yes to any of the above questions, then read on.
Let’s start with the easy stuff. To draw Andrew’s Pitchfork you select three consecutive pivot points.
Price will make it to the middle line, most of the time.
When price movement is strong it will close beyond the middle/median line.
After price goes up through the median line it pulls back and then goes further in the original direction.
After price goes down through the median line, it goes back up to median and then goes further in the original direction.
The zoom/close through the median line forecasts the next up and down move.
A zoom failure occurs when price fails to make new highs as expected.
Zoom failures do not go past the next median line.
During a zoom failure pattern there may be a zoom in the opposite direction.
Failure of price to hit the median line indicates a longer move in the next direction.
Sometimes a zoom is in a counter trend median line and then a further move (down) often occurs.
Zoom plus median line not made precedes long/strong moves.
After a zoom up and price failure to make the median line, a strong move is normal.
After a zoom a counter move may fail to make it to the median line and the strong move continues.
Here is an example in gold:
This can also be applied to soybeans prices.
This can be combined with other hidden geometry methods. Over time you will develop a strong feeling for more insights. You can find a good resource video here.
Ron Jaenisch was a personal student of Dr. Andrews of Median Line fame. He has articles published in several magazines including Stocks and Commodities, Futures and Traders World. For over 10 years has been trading and teaching the Advanced Andrews Course at www.andrewscourse.com.