Andrews Pitchforks Predictive of Market Behavior

1. Andrews PitchforksPredictive of Market Behavior Bob Hill

2. 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

3. 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

4. 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 Trend

5. Price Movement

6. Price Movement 2

7. Price Movement 3

8. Multiple Pivot Lines (MPL)

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

10. 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

12. 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

13. Find Major Pivots

14. Draw BC Centerline and Find Midpoint

15. Draw Median Line (A to Midpoint)

16. Add B and C Parallel to Medianline

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

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

19. 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

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

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

22. 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

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

24. 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

25. Prices reverse at any ML or extension of a prior ML

26. Prices reverse at any ML or extension of a prior ML

27. 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)

28. Rule 5 Hagopian’s Reversal Rule

29. Rule 5 Hagopian’s Reversal Rule

30. Rule 5 Hagopian’s Reversal Rule

31. Standard Pitchfork

32. Schiff of Pitchfork (Jeremy Schiff)

33. Modified Schiff of Pitchfork (Dr. Andrews)

34. 6 Billion Japanese Yen

35. 6 Billion Japanese Yen (60 min.)

36. BRCM Daily

37. Apple Daily

38. Apple Daily

39. Apple Daily

40. Apple Current

41. 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)

42. 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

43. 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.