Bob Hill Outline Reading a Chart to Predict Price Action Action Reaction Lines Every Action has an equal and opposite Reaction Median Lines Andrews Pitchforks Rules to Use Pitchforks Application to Random Charts ID: 694160
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Slide1
Andrews PitchforksPredictive of Market Behavior
Bob HillSlide2
OutlineReading a Chart to Predict Price Action
Action / Reaction Lines (Every Action has an equal and opposite Reaction)
Median Lines
Andrews Pitchforks
Rules to Use Pitchforks
Application to Random Charts Slide3
Personal Rules for TradingSlow Down, there will always be another trade
If there is not a good, high probability set up, do not trade (no boredom trades)
Enter after a test on the re-test with a limit order
Set stop and target with order (stop and target are active if limit order is filled)
Minimum Reward / Risk
2:1 prefer > 3:1Slide4
Mark Charts to UnderstandPrice Action
Mark higher highs and lower lows to determine
Pivots
Mark
Significant Pivots
(highs and lows) with lines all the way across the chart
Identify the
TREND
As you mark your chart, notice possible
Multiple Pivot lines
Draw the MPL that best fits the TrendSlide5
Price MovementSlide6
Price Movement 2Slide7
Price Movement 3Slide8
Multiple Pivot Lines (MPL)Slide9
Doubling The Range in Consolidation(Building Energy for a Break Out)Slide10
Action and ReactionAny action is followed by an equal and opposite reaction
A movement down is usually followed by a movement up
Use Significant PivotsSlide11Slide12
Median LinesDrawn from Significant Pivots
Use A B C as points for pivots
Derived from Middle of BC Line
Median Line is the line from Point A through the middle of the BC Pivot lineSlide13
Find Major PivotsSlide14
Draw BC Centerline and Find MidpointSlide15
Draw Median Line (A to Midpoint)Slide16
Add B and C Parallel to MedianlineSlide17
Rules for Median Lines (5 rules)
There is a high probability that prices will reach the latest MLSlide18
Rule 1. 80% Probability the move will reach the next median lineSlide19
Rules for Median Lines (5 rules)
There is a high probability that prices will reach the latest ML
Prices will either reverse on meeting the ML or gap (zoom) through itSlide20
Rule 2. Price will either reverse on meeting the ML orSlide21
Rule 2. Price will either reverse on meeting the ML or Gap (Zoom) throughSlide22
Rules for Median Lines (5 rules)
There is a high probability that prices will reach the latest ML
Prices will either reverse on meeting the ML or gap (zoom) through it
When prices pass through the ML, they will pull back to itSlide23
When prices pass through the ML, they will pull back to itSlide24
Rules for Median Lines (5 rules)
There is a high probability that prices will reach the latest ML
Prices will either reverse on meeting the ML or gap (zoom) through it
When prices pass through the ML, they will pull back to it
Prices reverse at any ML or extension of a prior MLSlide25
Prices reverse at any ML or extension of a prior MLSlide26
Prices reverse at any ML or extension of a prior MLSlide27
Rules for Median Lines (cont.)
5. When prices reverse before reaching the ML, leaving a “space”, they will move more in the opposite direction than when prices were rising toward the ML. (
Hagopian’s
Rule
)Slide28
Rule 5 Hagopian’s Reversal RuleSlide29
Rule 5 Hagopian’s Reversal RuleSlide30
Rule 5 Hagopian’s Reversal RuleSlide31
Standard PitchforkSlide32
Schiff of Pitchfork (Jeremy Schiff)Slide33
Modified Schiff of Pitchfork (Dr. Andrews)Slide34
6 Billion Japanese YenSlide35
6 Billion Japanese Yen (60 min.)Slide36
BRCM DailySlide37
Apple DailySlide38
Apple DailySlide39
Apple DailySlide40
Apple CurrentSlide41
Action Reaction LinesAndrews Pitchforks
Slow Down in Trading
Trade close to the edges but with confirmed turns
Wait for a recognized set up
2:1
Reward / Risk
minimum
Have Realistic Profit Targets (may get more, but only expect about 3:1)Slide42
SummaryReading a Chart to Predict Price Action
Action / Reaction Lines (Every Action has an equal and opposite Reaction)
Median Lines
Andrews Pitchforks
Rules to Use Pitchforks
Application to Random Charts Slide43
Resources
Free resource
www.medianline.com
contains Dr. Andrews entire book.
Free + paid resource (lots of free stuff)
www.marketgeometry.com
Marketgeometry
has a free 1.5 hour session every Monday at 2-about 3:30. They are recorded and available later. Look at some of these for additional help.
Watch
marketgeometry
web site for additional free information.