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Pitchfork Primer Manual
Pitchfork Primer Manual
To: TradersZone
Subject: Course Information
Date: Sonntag, 30. Januar 2000 01:47:24
Hello TradersZone,
Glad to hear you are going to join us. Here's some more information for you.
The course was designed to fill in the details of Dr. Andrew's Action/Reaction trading methods. The
"Pitchfork" is his best known method. It became his namesake, and a lot of traders know what it is.
What isn't generally known, however, are the rules and techniques he taught for it's use. Those
rules are covered in detail in the course.
Dr. Andrews also taught several other Action/Reaction trading methods. He used them in
conjunction with the Pitchfork. When used together, they are a powerful combination. Those
methods are also taught in the course.
The course consists of six lessons; each has several parts, or teaching points. Charts, instruction,
and comments are exchanged by e-mail.
Each lesson costs $35.00, payable by check or money order. To enroll, simply let me know that you
want to begin the course. The first segment of lesson one will be e-mailed to you shortly after you
let me know your payment is in the mail.
Mailing address is: Gordon DeRoos, PO Box 3555, Princeville, HI. 96722
Thanks again for your interest, and please let me know if you need more information.
Sincerely,
Gordon
>
From: PitchforkPrimer
To: TradersZone
Subject: Course enrollment
Date: Mittwoch, 2. Februar 2000 01:02:30
Hello Gordon,
I was not sure where to put P1, so I chose the bar with the highest close.
>Please study the attached chart of LSI Logic.
>Locate and label the intermediate-term pivots as you see them.
>When ready, please return your chart to me. We'll continue from that point.
From: PitchforkPrimer
To: TradersZone
Subject: Good call
Date: Mittwoch, 2. Februar 2000 06:48:19
Hello Gordon,
I have attached a chart of AET. I hope it's a good example.
Regards,
TradersZone
>At this point, please send me a chart of your choice showing several
>intermediate-term pivots that you've marked. Include at least two
>pitchforks. We'll go on from there.
From: PitchforkPrimer
To: TradersZone
Subject: Pivots and pitchforks
Date: Donnerstag, 3. Februar 2000 07:12:28
Hello TradersZone,
Nice work on the charts you returned. Everything was by the book. It appears that you have the
procedures well in hand.
Here's the final portion of lesson 1. The concept is basic, but it does the important job of helping a
trader stay on the right side of the market.
Will you be continuing the course?
Regards,
Gordon
The first lines Dr. Andrews drew on a new chart were the long-term and intermediate-term median
lines. After identifying the significant pivots, he drew his first median line beginning with P0-1/2,
and worked forward on the chart, using each subsequent set of 3 pivots. Each ML served to vector
prices....acting as a magnet, if you will, that drew prices towards it. He said that prices will head for
the new ML over 80% of the time.
Parallel lines are not drawn when using this procedure. It's prime function is to determine the
direction and price level of the new ML. Recall that Dr. Andrews anticipated a price reversal at each
new ML.
The attached chart of LPX illustrates this technique. Try this on some of your own charts, and then
please send me an example.
From: TradersZone
To: gordon@pitchforkprimer.com
Subject: Re: Median Line Technique
Date: Montag, 7. Februar 2000 19:27:18
LOW2.GIF
From: PitchforkPrimer
To: TradersZone
Date: Mittwoch, 9. Februar 2000 05:47:10
>At each point where prices touched a channel line, and then reversed
>direction and went all the way back to touch the opposite channel line,
>a circle was drawn. Put another way; if prices touch one channel line,
>but then don't go all the way back to touch the opposite channel line,
>a circle is not drawn.
Shouldn't the last circle on your Brightpoint chart be left out?
The price didn't return to the opposite channel line after that day.
This is my chart:
From: PitchforkPrimer
To: TradersZone
Subject: Thanks for the question
Date: Mittwoch, 9. Februar 2000 23:14:37
Hi TradersZone,
I'm returning your chart....please note comments.
Gordon
Regards,
Gordon
From: TradersZone
To: gordon@pitchforkprimer.com
Subject: Re: Thanks for the question
Date: Donnerstag, 10. Februar 2000 23:30:59
Hello Gordon,
thank you, I'm ready for the next lesson.
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: Next part
Date: Donnerstag, 10. Februar 2000 23:56:13
Here are my examples. I couldn't find enough charts with downside targets, so I included some charts with upside targets.
Do the channel lines always have to be horizontal? When I look at my charts, I find more channels with an upward slope or a
downward slope.
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: Sideways channels
Date: Freitag, 18. Februar 2000 00:55:31
>Before continuing on to the next lesson, let's briefly review what has
>so far been covered. The attached chart provides an opportunity to
>illustrate the methods referred to above. Please draw these methods on
>the chart, and return to me.
Hello Gordon,
here is my chart:
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: Next lesson attached
Date: Mittwoch, 23. Februar 2000 01:45:39
>Lesson 4, continued.
>
>In one of his course letters, Dr. Andrews wrote: "The Law of Physics
>stated by Newton that Action and Reaction are equal and opposite was
>first applied to prices by your Course Director's friend, the late
>Roger Babson, who attributed his earnings of several million dollars to this law.
>
>Beginning with this segment of lesson four, and continuing in lesson
>five, you'll learn how to draw and apply the Action/Reaction trading
>method as taught by Dr. Andrews in his trading course.
>
>The A/R method requires a "centerline," or C/L, from which to start.
>The C/L can be any of the following:
> - MPL
> - ML
> - MLH
> - 2P line
> - 2 Gap line
> - Peak to low line
> - Low to peak line
Hello Gordon,
2P line, 2 Gap line, Peak to low line, Low to peak line – actually I don't know what these lines are.
Are they discussed in Lesson 3?
I believe you haven’t sent me this lesson yet?
Anyway, I found two more MPLs on the Novellus Chart and drew them in.
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: Lesson 3
Date: Mittwoch, 23. Februar 2000 23:59:58
>In the meantime, experiment with the multi-pivot centerline on your own
>charts. Then please send me an example of your work, along with any
>questions you may have.
Hello Gordon,
I was wondering how many Action/Reaction lines could be drawn on a chart? On my attached chart I found at least 6 parallel
lines which had a significant meaning for the price.
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: AR lines
Date: Montag, 28. Februar 2000 08:01:28
>Hello Gordon,
>
>I was wondering how many Action/Reaction lines could be drawn on a
>chart? On my attached chart I found at least 6 parallel lines which had
>a significant meaning for the price.
>
>Regards,
>TradersZone
Hi TradersZone,
There's no set number of lines that can be drawn....actually the more you can find, the better.
Finding a good centerline is the key. And once you find lines that work, such as you did, any
number of parallel lines can be drawn. You are doing exactly what Dr. Andrews did....taking the
time and effort to find the best fitting sets of lines. Each chart has them, and each chart is different,
as I'm sure you've found. Nice work!
Here's the next part.
Regards,
Gordon
Lesson 3 continued.
One of Dr. Andrew's favorite techniques dealt with gaps....an often times perplexing price event for
many traders. His observations over the years suggested to him that, while gaps show up
frequently on many price charts, few traders have a method for including them as an integral part
of their chart analysis. That's not surprising, since not much has been published about how to
approach the use of gaps in a trading method. Dr. Andrews, however, found several ways to put
price gaps to good use. An Action/Reaction centerline which uses gaps as its basis is one such
method.
Please refer to the attached chart of Cendant. You'll see that a centerline was drawn which passed
through the July gap. Note that it also came in contact with several pivots, thereby qualifying as a
gap/multi-pivot centerline. It is drawn by starting at the April low pivot, and extending a line across
and through the gap in mid-July. It subsequently touches two additional high pivots.
Dr. Andrews counted each gap as two pivots. He noted that the more pivots a line touched, the
stronger the line tended to be in the future. Good reason, then, for using the July gap as the basis
for an Action/Reaction study. Our C/L is labelled a gap-mpl-C/L.
The May '98 high was used for the Action Line starting point. A line was then drawn parallel to the
Centerline, as per Action/Reaction procedure. The corresponding Reaction Line was then drawn in.
If this particular study had been drawn on Cendant's chart right after the July gap was put in, the
potential for prices to go all the way down to the Reaction Line might have seemed very slim at the
time. Notice, however, that prices reached the Reaction Line in early September. You'll see this
happen time and again as you work with the A/R method. The core of it's effectiveness is a strong
C/L.
Please send me two examples of a gap/mpl A/R study using charts of your choice.
From: TradersZone
To: gordon@pitchforkprimer.com
Subject: Re: AR lines
Date: Montag, 28. Februar 2000 15:59:37
>Please send me two examples of a gap/mpl A/R study using charts of your
>choice.
Hello Gordon,
here are my examples.
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: More on the AR
Date: Donnerstag, 2. März 2000 07:11:58
Hello Gordon,
I think the peak-to-peak C/L on the last chart I sent to you was not really drawn from peak to peak.
I'm sending another example.
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: Next Lesson
Date: Mittwoch, 8. März 2000 07:25:26
Hello Gordon,
in my charting software (Dynamic Trader) the Schiff ML is drawn by finding the midpoint of the line between pivot A and pivot B,
moving this point horizontally to directly above or below (depending on whether A is a low or high pivot) the A pivot, and
drawing a line from his point through the midpoint of the BC swing.
Are there different methods of drawing a Schiff ML?
I was too lazy to draw Schiff MLs by hand with the method you described, so I'm sending my examples with the "Dynamic Trader
Schiff MLs" :-)
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: Schiff
Date: Samstag, 11. März 2000 07:02:26
Hello TradersZone,
Here's one of the tools Dr. Andrews used most often when entering, exiting, or reversing market
positions. Not many people know about this technique.
Regards,
Gordon
The Sliding Parallel (SH) is drawn whenever prices cross an Andrew's line, and then move along it.
For example, if the bottom of a daily price bar range drops through a lower parallel line of a
pitchfork, a new parallel line is then drawn from that low and extended to the right. If the next
day's price bar drops through that sliding parallel line, a sell signal is generated.
Whenever price action dictates a sliding parallel, the next step is to draw a "Warning Line." The
warning line is an additional parallel line that is an image extension of the original pitchfork
channels. It serves as a warning that if prices penetrate the sliding parallel, the next likely target is
the WL.
The attached chart of Avis illustrates these procedures. Please try these on your own charts, and
send me an example.
From: TradersZone
To: gordon@pitchforkprimer.com
Subject: Re: Sliding Parallel Line
Date: Dienstag, 14. März 2000 22:57:37
Hello Gordon,
this is my chart with the sliding parallel line and the warning line.
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: Circuit City SH
Date: Donnerstag, 16. März 2000 06:56:06
>The "Mini-Median Line" was one of Dr. Andrew's favorite market entry and
>exit tools. Though most often drawn using alternate closing prices,
>alternate highs and lows can also be used
>in order to avoid whipsaws in narrow trading range markets. 2 to 4 days is
>usually the maximum between pivots 2 and 3, and P1 can be a day or more
>back from P2.
Hello Gordon,
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: intraday charts
Date: Samstag, 18. März 2000 01:24:00
Hello TradersZone,
I'm reading between the lines here, but if you plan to day-trade using the course techniques, ie the
pitchfork, then I agree that the regular pitchfork would be more useful on intraday charts. Otherwise
whipsaw would be a significant problem. Please get back to me if I didn't address your question,
because this is a very important technique. The mini-median line pitchfork and sliding parallel showed
up on most of Dr. Andrew's charts.
Regards,
Gordon
From: TradersZone
To: gordon@pitchforkprimer.com
Subject: Re: intraday charts
Date: Dienstag, 21. März 2000 22:03:22
Hello Gordon,
You are right. I'm planning to daytrade S&P futures using the course techniques among other things.
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: Next segment
Date: Freitag, 24. März 2000 00:34:08
Hi TradersZone,
Here are a couple Andrew's techniques that will help anticipate the breakout direction of a
sideways channel.
They work often enough to warrant keep handy.
Regards,
Gordon
In an earlier lesson you were introduced to Dr. Andrew's sideways count. You saw how frequently
the sideways count method provided high probability price objectives after the breakout from the
established channel took place.
In this segment of lesson 4, you'll be shown 2 congestion area techniques that can help you
determine the probable sideways channel price breakout direction. Both rely on the use of pivots.
The first uses the pivot points that are circled on a sideways channel. Dr. Andrews observed that
whenever a sideways channel results in at least 5 circle contacts, the eventual price breakout
would very often be in the direction indicated by the location of the 5th circle. If circle 5 is at the
top of the channel, for example, the eventual price breakout would likely be to the upside. If circle
5 is at the bottom of the channel, look for a downside breakout. Dr. Andrews noted that this
technique can be subject to false breakouts, but that such breakouts are usually followed shortly
after with a confirmed breakout in the direction indicated by the location of the 5th circle. He
emphasized that this study is best considered as a rule of thumb observation. He viewed it as a
supporting indicator for use with a short-term pitchfork as prices approached a channel line.
There are 2 charts attached that show how this works.
The second technique in this part of lesson 4 deals with a sideways channel
that is building shortly after a P3 has been formed. Dr. Andrews noted that
whenever that happened, the probabilities were high that prices would
breakout in the same direction they were moving prior to the formation of
the sideways channel. The attached "P3 to sideways example" chart shows this
procedure.
From: TradersZone
To: gordon@pitchforkprimer.com
Subject: Re: Next segment
Date: Freitag, 24. März 2000 20:52:35
Hello Gordon,
here is my example for the 5 circle sideways count.
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: Lesson 5
Date: Montag, 27. März 2000 06:07:31
Hello Gordon,
here is my chart with trendlines.
When a trendline is broken in an uptrend and the price is going above the trendline again, should I draw a new trendline and
delete the old one?
Attached is another chart with the P3 to sideways rule, I finally found an example for it.
Regards,
TradersZone
From: PitchforkPrimer
To: TradersZone
Subject: Price failure technique
Date: Freitag, 31. März 2000 08:14:12
From: PitchforkPrimer
To: TradersZone
Subject: Chart
Date: Freitag, 31. März 2000 08:18:00
Attachments: image002.png
Hi TradersZone,
Forgot the chart.....
Gordon
From: TradersZone
To: gordon@pitchforkprimer.com
Subject: Re: Price failure technique
Date: Samstag, 1. April 2000 20:10:00
From: Gordon
To: TradersZone
Subject: Next segment
Date: Mittwoch, 5. April 2000 23:56:24
Hi TradersZone,
Good price failure examples you sent...any comments or questions about it?
Here's the next part....another old standby Dr. Andrews kept handy.
Regards,
Gordon
In this segment you'll learn how to use the "Fan line Technique." To draw the fan lines, you'll apply the course
trendline method which was introduced in an earlier lesson. It might be well to emphasize that the practical
application of the course trendline method requires practice and experience, both of which will serve you
well in this technique. Dr. Andrews used fan lines as an adjunct to his pitchfork, sideways channel, and
action/reaction methods.
In the fan line study three trendlines are drawn from the original reversal pivot of the price correction under
study, typically a P0 or a P5. You'll notice on the charts included with this study that each fan line is at a
flatter angle than its predecessor. When the third fan line is broken, the rule is that the correction has ended
and a new trend is under way.
Try this technique on some of your own charts, and then please send me a
sample.
From: TradersZone
To: gordon@pitchforkprimer.com
Subject: Re: Next segment
Date: Donnerstag, 6. April 2000 23:43:15
Hi Gordon,
No, I don't have any specific question about the price failure technique. I guess the next likely target after a price failure would
be the warning line?
I have attached two charts with fan lines.
Is it possible to calculate a fourth "target" fan line, if the third fan line is broken?
Regards,
TradersZone
From: Gordon
To: TradersZone
Subject: Re[2]: Next segment
Date: Freitag, 7. April 2000 00:33:12
Hello TradersZone,
TZ> Hi Gordon,
TZ> No, I don't have any specific question about the price failure
TZ> technique. I guess the next likely target after a price failure
TZ> would be the warning line?
TZ> Regards,
TZ> TradersZone
That's right, the warning line is the next price target. Additional
warning lines can be drawn if needed, but usually one will do it. If
prices go through the first warning line, another can be drawn, but
most likely a new pitchfork could be drawn instead, which would be
preferable. Helps stay current with recently formed pivots.
When prices break through the third fan line a buy or sell signal is
given. Not sure what you mean by fourth target fan line. I'm a little
dense today.
Your chart work was good...this is another handy tool for spotting the
high probability of a price reversal or trend change.
Best regards,
Gordon mailto:gordon@pitchforkprimer.com
From: Gordon
To: TradersZone
Subject: The Gap Trade
Date: Freitag, 7. April 2000 00:48:58
Hello TradersZone,
This trading signal doesn't show up very often, but past
observations have shown that it's well worth watching for.
Dr. Andrews placed a lot of emphasis on the importance of
price gaps, something many traders overlook. This is one of
his gap uses.
Best regards,
Gordon mailto:gordon@pitchforkprimer.com
The Gap Trading Technique.
Price gaps can be a dilemma for many traders. The general rule denoting market strength or weakness after a
high volume gap often comes up short after the initial reaction is over. Many "gappers" simply run out of
steam. A high volume gap in itself seems to offer precious little evidence that a profitable move is about to
get under way.
Dr. Andrews used price gaps somewhat differently than others. He counted a gap as 2 pivots. You'll see how
that works in the following technique which uses a gap to arrive at a price level for a buy or sell order:
Using short-term, daily price pivots, label the pivot immediately preceding the gap as p0. Count the gap as 2
pivots, labeling it p1 & p2. After p3 has formed, and prices reverse towards a short-term p4, draw a horizontal
line 2 price tics or more (individual preference)to the right of p3. Enter the market only if prices reach or
penetrate that line within a few days after reversing from p4.
Please look over your own charts to see if you can find places where the gap trade technique could have been
used. Send me a sample when you're ready.
From: TradersZone
To: Gordon
Subject: Re: The Gap Trade
Date: Sonntag, 9. April 2000 00:19:25
Hello Gordon,
this is my chart with a gap trade.
Regards,
TradersZone
From: Gordon
To: TradersZone
Subject: Re[2]: The Gap Trade
Date: Sonntag, 9. April 2000 06:55:38
Hello TradersZone,
Thursday, April 08, 2000, 12:19:25 PM, you wrote:
TZ> Hello Gordon,
TZ> this is my chart with a gap trade.
TZ> Regards,
TZ> TradersZone
Good example...the gap trade technique shines when an issue in at or near a P5. Similar to the one on the
chart you sent.
Here's another trading signal tool....
Best regards,
Gordon mailto:gordon@pitchforkprimer.com
Dr. Andrews used several techniques which helped him determine whether a P5 was near at hand. You'll
recall that he observed most price moves ended or had a significant reversal at a P5.
This technique uses alternate closing prices after a P4 has been formed. As with many of his studies, the
number 5 is used. The chart accompanying this segment shows that there were 5 alternate closes to the
downside after P4 was put in. Dr. Andrews noted that whenever 5 or more alternate closes followed a P4, the
probabilities were high that a P5 was near at hand.
An added feature to this chart study is the sideways channel. Notice how the 2nd target price and the 5th
alternate close nearly coincide.
From: TradersZone
To: Gordon
Subject: Re: Re[2]: The Gap Trade
Date: Mittwoch, 12. April 2000 20:07:30
Hello Gordon,
This is a chart with an example for the 5 alternate closes.
Regards,
TradersZone
From: Gordon
To: TradersZone
Subject: Re[4]: The Gap Trade
Date: Donnerstag, 13. April 2000 08:24:18
Hello Gordon,
this is my example with 5 trendlines.
Regards,
TradersZone
From: Gordon
To: TradersZone
Subject: Re[6]: The Gap Trade
Date: Donnerstag, 20. April 2000 01:27:26
TZ> Regards,
TZ> TradersZone
Hello TradersZone,
Good example of the 5 TL technique. Always reminds me of how the fairly simple tools often do a better job than many
of the sophisticated studies out there.
That was the last part of lesson 5. Lesson 6, attached, is made in one mailing. You'll find Dr. Andrew's trading rules along
with a wrap-up review which uses several of his rules. You might have questions about some of the rules, so feel free to
send them as they arise.
Best regards,
Gordon mailto:gordon@pitchforkprimer.com
Dr. Andrews had an abbreviated set of trading rules on several index cards that he carried around with him in his shirt
pocket. He said every trading day turned up something new on his charts, and by having his rules in his pocket, he was
reminded of the need for a methodical approach to his analysis. Quite a comment coming from the man who wrote the
rule book.
In this, the final lesson of the course, Dr. Andrew's original trading rules and observations are presented. Let's work with
a few of them at this point.
Using charts of issues you follow, please send me an example that illustrates your interpretation of each of the following
rules:
Feel free to include any other course techniques you choose to apply, but please include examples of the above as a
minimum. Use more than one technique on a chart if your analysis supports it. Send as many charts as you like, along
with your questions/comments.
############################################################################
This lesson covers course rules and significant observations as taught by Dr. Andrews in his original trading course. The
rules are those that he used in his own trading, and are provided to serve as a checklist for use with the course trading
methods you've learned.
Rule #1. Where prices are always headed Rule. You course members are among the fortunate few to be able to draw a
straight line and know that prices are headed toward that ML. Very few investors have ever applied this ML principle of
statistics to price fluctuations, and we've never seen this in any books on investment. You are among the very few who
know that prices are always headed toward the newest ML.
Rule #2. The Rule of coming opposites applies all through life. In the bible we find, "Blessed at they that mourn, for they
shall be comforted." As investors, we know that any losses can be recovered by using course methods.
Rule #3. "Turn your mind about," or "Rethink, for all good is at hand." We should mentally prepare ourselves for the
coming reversal in prices, and other affairs. Here's one way for example, that you course members who know the ML
rules can use: When prices are skyrocketing upward, we do this preparation by thinking "If prices pivoted here today at
this price, I'd draw a new ML bisecting the distance between todays price and the price from which the rise started." And
we know now that if this is a Major Pivot, prices will fall rapidly to this new ML. Profits from such drops are big and quick.
Rule #4. Rule for anticipating major P's. If, during congestion, or after a rally or decline, you can count four previous P's,
the fifth one is highly probable to be the one from which a new trend starts.
Rule #5. Rule for easily detecting the major P from which you can make a quick, big profit is to watch for the EP
formations.
Rule #6. The other reversal rule is that prices tend to reverse at or near any ML, as well as at any extension of each ML.
And also at any MLH or extensions of MLH.
Rule #7. The Penetration Rule is that whenever prices gap past, or plunge through any ML, there is a high probability that
they will quickly return to it temporarily, and then resume the trend they had before they gapped or plunged through.
Rule #8. Price Failure Rule; When prices fail to reach the ML as shown by a space between the P of reversal and the ML,
the probability is that this price reversal will go further than it did on it's approach toward the ML.
Rule #9. The price failure rule is negated when the next price trend is also a failure in reaching the ML. This is almost
invariably a signal of a big, fast move in the direction indicated by this last "space."
Rule #10. When alternate median lines of comparable length slope in the same direction, the trend is firm, and rapid
price changes take place.
Rule #11. When 1-ML2/3 is exactly reached at P4, it can be used as a highly reliable centerline for the A/R method.
Rule #12. Frequently, after crossing a lower MLH, prices continue to rise along the MLH. Since the crossing of the MLH
signals a further drop is likely, use a sliding parallel along the bottom of the most recent crossing. If prices drop past that
sliding parallel line, a sell signal is generated.
Rule #13. ML's between P2 and P3 can start from a nearby or a remote P1, since prices tend to reverse at each of these
ML's. Try several such P2-P3 ML's to discover the best fit.
Rule #14. The distance of each MLH from its ML is the distance of the next warning line. Use these warning lines
whenever a SH has signalled a buy or sell.
Rule #15. Use the MMLH as a buy or sell signal when you expect a reversal because of a P5. Also when prices are at a
WL, ML extension line, or where course lines converge, or intersect.
Rule #16. Converging lines that meet prices have shown the highest probability of a trend reversal.
Rule #17. Two to four days is usually the maximum between P2 and P3 for a MML. P1 can be a day or so back from P2
and 3.
Rule #18. The most reliable Action/Reaction centerlines seem to be: MPL, 2P line, 2 Gap line, peak to low, or low to peak.
Rule #19. When prices pass through R lines, look for a pull back and then a continuing move in the direction of the pass
through.
Hello Gordon,
here is my example for Rule 4.
And I have a question: What are EP formations?
>Rule #5. Rule for easily detecting the major P from which you can make
>a quick, big profit is to watch for the EP formations.
Regards,
TradersZone
From: Gordon
To: TradersZone
Subject: Re: Rule #4
Date: Freitag, 5. Mai 2000 02:12:42
From: TradersZone
To: Gordon
Subject: Re: Rule #4
Date: Freitag, 5. Mai 2000 23:21:27
Hello Gordon,
Thank you for the lesson with the EP material, I couldn't find it in any previous email.
Here is my example for Rule #7.
Regards,
TradersZone
From: Gordon
To: TradersZone
Subject: Re[2]: Rule #4
Date: Samstag, 6. Mai 2000 08:08:27
TZ> Regards,
TZ> TradersZone
Hi TradersZone,
Glad you mentioned it earlier....except for the EP, IEP, and his
sideways channel, Dr. Andrews didn't have much to say about chart
patterns and formations. These are good ones to use though.
Best Regards,
Gordon mailto:gordon@pitchforkprimer.com