weekend charting 24-26 september, page-64

SSkim, I am not Totters but merely an apprentice in the dark art. An extract from something he gave me (cannot copy the diagram but A,B & C are the three points (H-L-H or L-H-L) that form the fork). Suggest if you want to know more keep asking & the Master may make some more stuff available LOL:

The Median Line Pivot Zone

When using the Median Line to swing trade pivots, it becomes very helpful to estimate when
the price should reach the Median Line. Andrews stated that the price reaches a Median Line drawn
from the most recent swings approximately 80% of the time. But how long should a trader wait for
the price to reach the Median Line? Austin Financial Group developed a technique named the, "Median
Line Pivot Zone," to estimate how long it should take for the price to reach the Median Line. The
diagram below shows a Median Line drawn using pivots A, B, and C. The first step to calculate the
Median Line Pivot Zone is to draw a Median Line and count the bar size of the two swings from A to
and to C.

On the diagram below the size of swing A to is shown as 10 bars and size of swing to is
shown as 15 bars. Starting from the newest pivot used to draw the Median Line, in this case pivot C,
count forward the number of bars in the larger of the two swing counts and mark this bar on the
Median Line.

Finally, draw a rectangle from pivot down to the mark on the Median Line. This rectangle is
the Median Line Pivot Zone. Research at Austin Financial Group shows that the price usually reaches
the Median Line before the end of the Median Line Pivot Zone. It is important to note that when the
price touches the Median Line within the pivot zone, there is not a guarantee of a price reversal. What
the Median Line Pivot Zone does is indicate that the market is moving in a cyclical fashion and can be
used for swing trading. The next page has some rules for using the Median Line Pivot Zone.

Median Line Pivot Zone Rule 1: If the price does not reach the Median Line inside the Median
Line Pivot Zone, this indicates the market may not be in the appropriate position for swing trading at
that time. In this situation, the swing trader takes extra caution or waits for the next swing.

Median Line Pivot Zone Rule 2: If the price does reach the Median Line in the Median Line Pivot
Zone, this indicates the market is most likely suitable for swing trading. A trader starts watching for a
pivot.

Median Line Pivot Zone Rule 3: When the price reaches the Median Line in the Median Line
Pivot Zone, it will often end up touching the Median Line more than once before forming a pivot. This
means a trader watches for a pivot but does not blindly enter the market expecting an immediate
swing reversal.