# My FX Trading using Median lines



## James Austin (2 September 2009)

Began exploring Fx a couple of months ago. I’ve been using a little known, or little used indicator called Andrew’s Pitch Fork, or median lines. It’s a leading indicator, not unlike a trend line. Other than this, I just draw a few lines here and there, trend lines, support and resistance, channels etc. My approach is pretty simple.

  Median Lines seem to show some promise, so I’d like to see if this thread can turn into some constructive discussion.

  Also, I wont be making any claims regarding my own personal trading, I want to keep the focus on the method and “potential” trade set-ups as the unfold.

  Right now I’m watching this short trade (circled), but I don’t like that ‘V’ shape, may push price up and against the short.

  AUDUSD 20min 
  short 0.8280, stop 0.8285, exit target 0.8255


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## Real1ty (2 September 2009)

APF is well known in FX circles, although i have never used it but look forward to some feedback from others that have.

Pretty strange thread title to use if you are not going to include your own predictions or results.


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## Mr J (2 September 2009)

I like the pitchfork. I haven't spent too much time looking at it as S&R, but I occasionally use it after a pivot to see where the median line would be. I see it as illustrating the natural balancing nature of the market, and marking the point to which the market will more often than not retrace. Just something more to push the odds in our favour.

Something to consider is that the original drop stopped at an additional median line, but that point was also 0.825 - a major number. It then came back up to the next median line, but that point was also the pivot point S2. It also all takes place in a pitchfork that formed on Friday, where price has just hit the main median line. To go even further, that short occured on the 3rd touch of a downwards trendline, and we're now at yesterday's lows.

We're also right on a longterm trendline that started in March, and a slight up trend over the last couple of weeks.

I bet there'd be something by pulling out the 50% retracement, and all sorts of horizontal S&R. Possible to get drowned in too much of this stuff, which is why I wouldn't use the extended median lines . I'm not going short yet, and I may be going long.


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## Trembling Hand (2 September 2009)

I think there is a danger in putting all these lines overlaid on a chart. By simply placing a line in your visual field you give it significance mostly at the expense of something else. You almost are locked onto that line or group of lines playing a role. Should it be given such significance?

Humans are very suggestible creatures, traders maybe more so. If you put something prominent in your site you better make sure its worth it.


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## Stormin_Norman (2 September 2009)

what story is it telling?

that's always what i ask myself of indicators.


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## James Austin (2 September 2009)

thanks for the comments

i'll put up examples as i find them, preferably prior to the trade completing, and we'll see how it goes . . . . an experiment!!


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## Mr J (2 September 2009)

Trembling Hand said:


> Should it be given such significance?




Not unless the market gives them significance.




> Humans are very suggestible creatures, traders maybe more so.




Between pitchforks, horizontal lines, trendlines, pivot points, fib numbers etc one could find 'significance' at any point, and could drown in a chart of lines. That said, the market does regularly react to these points, so it is worth being aware of them.


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## Trembling Hand (2 September 2009)

Mr J said:


> Between pitchforks, horizontal lines, trendlines, pivot points, fib numbers etc one could find 'significance' at any point, and could drown in a chart of lines. That said, the market does regularly react to these points, so it is worth being aware of them.




Thats my point. You put them there they have significance to YOU. Only in hindsight do you know how much significance you should of given them.

Better not feeding yourself info in my HO.


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## James Austin (2 September 2009)

i would like to see the blue ML resist price at the green circle and push price down to the lower red channel = exit target

EURJPY 20min
short 132.16, stop 132.31, exit ~ 131.60ish


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## motorway (2 September 2009)

All Price really has at any moment is a certain Postion

Ok if lines help you See that OK

But it is Price that has the position not the lines

Now important _At a certain moment_

Next moment price has a different position..

Hence there is a Rate of change = velocity
And There is rate of change of velocity = accelleraton

So 

All there is , is *Position and it's Derivatives*

Now all you need is the best representation
of Postion and Rate of Change

This for me is NOT indicators
but nested frequencies

This for many will be multi nested  time frames...

Add volume there is not much else...

Resistance and Support
are *where ever * ROC + VOLUME reveal it to be

Your lowest frequency will define Primary trend & POSITION
Your next highest will define ROC as VELOCITY
and next highest ( so shorter time frame ) will define ROC as ACCELLERATION

So you have Position , Kinetic energy ( mean reversion  ) & potential energy ( turning & change up - points )

THE PIVOTAL POINTS unfold where they do

LINES can certainly help but I think just  a few



motorway


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## Mr J (2 September 2009)

Trembling Hand said:


> Better not feeding yourself info in my HO.




I know what you mean, but I can't help myself when it's the 3rd bounce off a trendline :. I trade the price action, but some lines have their uses. Example, I may see a downtrend, but pass it because we're at the trendline of an uptrend. Such as what happened over the last 24 hours with the AUD.


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## Stormin_Norman (2 September 2009)

i use horizontal support/resistance lines.

their story is - someone (or a collective of someones ) is buying/selling quite a large amount at that point, so when they get the price they want to trade at, its filling the market and reversing its direction.

what is the fork's story?


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## cashflow_08 (2 September 2009)

G-day . Can anyone provide or link me a good learning resources of Median line. and pitchfork analysis. I have looked them at the past but  didnt really quite get the basics right.

Thanks


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## James Austin (2 September 2009)

got a wedge forming here, which i'm not fond of, so exit at +20



James Austin said:


> i would like to see the blue ML resist price at the green circle and push price down to the lower red channel = exit target
> 
> EURJPY 20min
> short 132.16, stop 132.31, exit ~ 131.60ish




it is argued that *forks tell us where price is most likely to run out of energy*, 
why? i dont know . . . but it seems to have some validity when forks are drawn well



Stormin_Norman said:


> i use horizontal support/resistance lines.
> 
> their story is - someone (or a collective of someones ) is buying/selling quite a large amount at that point, so when they get the price they want to trade at, its filling the market and reversing its direction.
> 
> what is the fork's story?




CF, try
http://marketgeometry.com
http://www.medianline.com
plus google search Tim Morge





cashflow_08 said:


> G-day . Can anyone provide or link me a good learning resources of Median line. and pitchfork analysis. I have looked them at the past but  didnt really quite get the basics right.
> 
> Thanks


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## fapturbo (2 September 2009)

Stormin_Norman said:


> i use horizontal support/resistance lines.
> 
> their story is - someone (or a collective of someones ) is buying/selling quite a large amount at that point, so when they get the price they want to trade at, its filling the market and reversing its direction.
> 
> what is the fork's story?




Simple and very effective....


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## CFD (3 September 2009)

I guess it's only fair that the thread stay on topic with Median lines, but I would really like to hear more from motorway and in applying the wisdom of his post.


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## James Austin (3 September 2009)

here's a setup i've had my eye on this morning.

price bouncing off the blue ML, with expectation it will act as resistance and price will move down.

EURJPY 20min
short 131.64, stop 131.79, exit 131.10


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## James Austin (3 September 2009)

here's 2 video links for any interested in MLs

*"Using Traditional Median Lines"*
http://marketgeometry.com/?p=518

** traditional MLs are the most commonly used ML type.


*"**Modified Schiff Median Lines"*
 http://marketgeometry.com/?p=765

** modified schiff MLs are the second most common type of ML; these are used when price is moving vertically or when determing the most likely break direction of price out of a channel


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## James Austin (3 September 2009)

this is not a well confirmed ML, so its higher risk, 
but would like to see price head down after meeting resistance at the red ML

AUDUSD 20min
short 0.83595, stop 0.83745, exit ??


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## James Austin (3 September 2009)

would like to see price head down after meeting resistance at the red ML

GBPUSD 20min
short 1.62745, stop 1.62895, exit ??


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## James Austin (3 September 2009)

exit target 131.10 just missed (pink arrow)

i like to draw up more than 1 ML set to see what other S/R might be about, as the chart shows (yellow circle), there was potential resistance 10pips above my exit target 131.10




James Austin said:


> here's a setup i've had my eye on this morning.
> 
> price bouncing off the blue ML, with expectation it will act as resistance and price will move down.
> 
> ...


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## James Austin (3 September 2009)

triple bottoms on AUDUSD encourgaed BE close

higher low and close on topside of ML on GBPUSD encouraged early close -10

except for Monday, this week has offered me little re ML opportunities, . . . . it's a skill knowing when to step back, walk away and be patient


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## Kryzz (3 September 2009)

Do you have any sort of trend filter etc (higher timeframe perhaps) with your trading James?

Seems that GBP/USD short was quite a counter trend trade


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## James Austin (3 September 2009)

the trade was encouraged by the deflection away from the ML (black arrow), and the lower lows (purple line). having sad that, i knew i was pushing my 'luck' with this trade because the ML set wasnt the best quality, or well confirmed






Kryzz said:


> Do you have any sort of trend filter etc (higher timeframe perhaps) with your trading James?
> 
> Seems that GBP/USD short was quite a counter trend trade


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## Mr J (3 September 2009)

That purple line could also be interpreted as a higher low, coming back to test support at a previous high. I'm also getting a different pitchfork to you, as that purple line is where the pullback touches the median in my data.


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## James Austin (3 September 2009)

put up your fork and pivots please Mr J, and where's your data feed from?



Mr J said:


> That purple line could also be interpreted as a higher low, coming back to test support at a previous high. I'm also getting a different pitchfork to you, as that purple line is where the pullback touches the median in my data.


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## Mr J (3 September 2009)

Using IB data. I didn't see your third pivot, so that would be what is different?

Also, yellow line is support/resistance, and the purple and blue lines show the different ways of interpreting that wave (i.e. that pullback where you wanted to short is not necessarily a lower low, I'd consider it a higher low myself).

Bah, forgot to remove the crosshair before I took the screenshot.


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## Trembling Hand (3 September 2009)

Mr J said:


> Bah, forgot to remove the crosshair before I took the screenshot.



 I think you might be able to make a system out of that. It seems to be acting as support


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