Andrews Pitchforks Predictive of Market Behavior 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

Personal Rules for Trading Slow 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 > 3:1

Mark Charts to Understand Price 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 Trend

Price Movement

Price Movement 2

Price Movement 3

Multiple Pivot Lines (MPL)

Doubling The Range in Consolidation (Building Energy for a Break Out)

Action and Reaction Any action is followed by an equal and opposite reaction A movement down is usually followed by a movement up Use Significant Pivots

Median Lines Drawn 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 line

Find Major Pivots

Draw BC Centerline and Find Midpoint

Draw Median Line (A to Midpoint)

Add B and C Parallel to Medianline

Rules for Median Lines (5 rules) There is a high probability that prices will reach the latest ML

Rule 1. 80% Probability the move will reach the next median line

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

Rule 2. Price will either reverse on meeting the ML or

Rule 2. Price will either reverse on meeting the ML or Gap (Zoom) through

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

When prices pass through the ML, they will pull back to it

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 ML

Prices reverse at any ML or extension of a prior ML

Prices reverse at any ML or extension of a prior ML

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)

Rule 5 Hagopian’s Reversal Rule

Rule 5 Hagopian’s Reversal Rule

Rule 5 Hagopian’s Reversal Rule

Standard Pitchfork

Schiff of Pitchfork (Jeremy Schiff)

Modified Schiff of Pitchfork (Dr. Andrews)

6 Billion Japanese Yen

6 Billion Japanese Yen (60 min.)

BRCM Daily

Apple Daily

Apple Daily

Apple Daily

Apple Current

Action Reaction Lines Andrews 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)

Summary 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

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.