Reverse Pitchfork on 240m S&P e-mini

[Gary]

This reverse median line appears to fit well for the 240m ES.

[Hawk]

Hi Gary,

your red downsloping ML seems to describe the path of price very well. But it's not a classic ML nor a Schiff ML. How did you construct it? Where's the ankerpoint? Could you explain please. Looks very interesting!

My opinion about a possible reversal is following:
A reverse pitchfork in my understanding would be in this case an upsloping ML, as the current trend is down.
Before you can draw an upsloping ML, which has an reliable probability to describe the path of price, you should wait till the last swing high of the downtrend is taken out. And then wait for a test (and retest -> only, if you want trade Tim Morge's high probability setups) of the lower ML for an entry.

Hawk

[Gary]

Hi Hawk,

The attached has more details. Note that the anchor for this type of median line occurs on the opposite end of the swing than a traditional or Schiff ML. Outlined in the attached is the thinking behind the anchor point in this example.

Tim covers this in his book "Trading with Median Lines" on page 33 entitled "Inside Median Lines" (note: reverse pitchfork = reverse median line = inside median line). I would only look to use it when there's a trend reversal that you haven't anything to anchor the pitchfork handle to on the left side of the swing. This would be like a V-bottom or V-top.

Let me know if you have other questions.

Gary

[Gary]

Hawk,

I just turned on the warning line for the up sloping pitchfork (green). You can see where it nicely stopped price where the reverse median line and warning line intersects. Note that there's an energy point coming up.

Gary

[Hawk]

Hi Gary,

thank you for your great explanation. I have read Tim's Book 2 years ago and also repeated it a month ago but did't grasp the concept of the Inside ML (Reverse ML).

Your explanation and chart are an real eye opener for me.

Thanks,
Hawk

[tycoondonna]

Originally Posted by Gary

This reverse median line appears to fit well for the 240m ES.

Hi Gary,

Chart looks good...hard to see detail because of the background.

Take care,

Tycoondonna

[James Austin]

Originally Posted by Gary

Hi Hawk,

The attached has more details. Note that the anchor for this type of median line occurs on the opposite end of the swing than a traditional or Schiff ML. Outlined in the attached is the thinking behind the anchor point in this example.

Tim covers this in his book "Trading with Median Lines" on page 33 entitled "Inside Median Lines" (note: reverse pitchfork = reverse median line = inside median line). I would only look to use it when there's a trend reversal that you haven't anything to anchor the pitchfork handle to on the left side of the swing. This would be like a V-bottom or V-top.

Let me know if you have other questions.

Gary

thank you Gary, very clear,
and good to see i'm not the only one who uses FT

JA

[KAPITAL]

QUESTION: How is a reverse median line set drawn?

[Hawk]

Hi Kapital,

I 'll search for an chart example and try to explain the thoughts, when to use a reverse ML in addition to Gary's charts and notations. Hope, I can manage it this weekend.

Hawk

[Hawk]

Hi Kapital,

as promised a few conceptual pictures to show when to use an REVERSAL ML and how to construct it.

Usually the REVERSAL ML is rare used. The only reason is, when an trend reversal of a clear trend is assumed and there is no Pivot A where you can anker any meaningful traditional ML.

I have written comments on the coceptual pictures for more explanation.

Hawk