Median Line

Understanding the Andrews Median Line

By Ron Jaenisch

My friend Professor Hall Andrews is best known for an easy to draw trading tool, the Median Line. When the two parallel lines are added it appears to look like a pitchfork. Alan taught that prices make it to the median line 80% of the time. The value of knowing this is that it gives traders a probable out come.

The parallel lines that are drawn from points B and C make the median line even more useful. It is they that give the trader a sense of the range of price fluctuation in the future.

When used properly, they are very useful for indicating much more than knowing the trend or when a price reversal has occurred. They can also be used to indicate probable future price behavior.

Alan Andrews taught that when two or more median lines are in the same direction price movement is quicker. This makes it practical to draw the bigger median line and then calculate the probable future turning point within it by drawing another line as is seen in the above chart that was posted on CNN prior to the subsequent rise

Proper use of the Advanced course lines gives traders the tools to support them in finding price reversals. in smaller time frames in order to trade more efficiently and decrease risk.

Later the lines may be used to determine areas to exit the trade in order to take profits.

When it comes to the proper use of the pitchfork, there are many techniques depending upon a variety of factors.

The lines have been combined with wave theory, Stochastic and other indicators to develop mechanical trading systems.