In the first part of this basics series (Median Lines: How to Choose Major Pivots) we learned how to define major swing points from which to draw Median Line Sets.Once you understand your structure, its a matter of connecting the circles and reading your Median Lines with the 5 main Andrews rules. I will do a basic Andrews 5 rules post later in the series. First we understand how and where to draw from, then we build up from there.
First chart walks you through the swings as price changes trend. Notice the use of the dotted Median Line sets to gauge the pullbacks.They show you the pullback in a trend and where price should run out of energy.
Second chart Although it was a deeper pullback the trend was still up, the Dotted Median Line set captures the pullback. I also through in a more advanced technique here. You can use any of the parallels of a Median Line set as a Center-line and I did that with the lower parallel of the Blue Modified Schiff ML.
Third Chart shows a standard Median Line set from the next pivots. Price makes it to the ML and runs out of energy. Notice this green Median Line captures the same slope and frequency as the last charts advanced technique lines Its the nature of the lines. Its beautiful geometry.
We did much of this live last year in our daily sessions as it unfolded. You can see the next logical set and draw it in. It is still in play today.
Next part in this series I will follow up on the yen chart using the same ideas.