Trade Craft

All Things Concerning the Language of Price

Andrews Median Lines: Five Basic Rules

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In the previous Andrews Median Line post I described the various types of Median Line sets and the principles behind them. In this post, I will go over the 5 basic rules Andrews gave as to how price can interact with a Medina Line set. The rules apply to any Median Line set, in any instrument, and in any timeframe. It’s easy to get glazed over and get confused when looking at the original Andrews material but Iets look with some simple common sense and in the light of what buyers/sellers are doing.

There is a high probability that:

  1. Prices will reach the latest ML
  2. Prices will either reverse on meeting the ML or gap through it
  3. When prices pass through the ML, they will pull back to it
  4. When prices reverse before reaching the ML, leaving a “space”, they will move more in the opposite direction than when prices were rising toward the ML.
  5. Prices reverse at any ML or extension of a prior ML.

Andrews Median Line Tools: Standard ML Set And The Pullback ML.

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I’m going to do a basic series on the Andrews Median Line tools we use. We will start with the standard Median Line set and then make the distinction for a pullback Median line set. Our objective is to see what Allan Andrews saw, not mimic him. We want to use our tools and not be used by them. Everything is about zoom retest, price going out to an extreme eliciting trader’s impulses, and then coming back eliciting trader’s impulses the other way. This is why most traders throughout history are on the wrong side of the market most of the time.

After The Storm: The E-Mini S&P Weekly

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In the previous post to “Mapping The S&P E-Mini Weekly. It’s About Them, Not You“. We calmly mapped the weekly S&P E-Mini with swings right into the apex of the storm. In this video, we follow up on that along with the weekly stocks mapped (AAPL, VRTX, AVGO, SQ, BAC, and GILD). I used 2 simple techniques, swings, and where price came from. It’s not the method that’s important, its the presence clarity it can bring to our trade decisions.

Learning To Read Price Action Part 2

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In part 2 of this series I do some review on the price bars we are using and then I add the distinctions of major, minor, and relative in the same way we do with swings. Then we do some price reading practice with recent currency, futures, and equity markets. Reading price action like this spreads things out and eliminates much of the noise, so we just relate significant buyers and sellers to other significant buyers and sellers. I finished the video by looking at a qualified tail in a weekly Spotify chart (SPOT) that we can follow live.

Learning To Read Price Action Part 1

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Learning to read price action is easy. Its a matter of the relationship between buyers and sellers which is expressed in the bars. You don’t have to memorize complicated bar patterns with funny names or dozens of dead mechanical rules and formulas. In this video, I will show how to define a few significant bars, how to mark them out, and then talk about the essence of these price bars and how they relate to price flow. They show you where the controlling areas of buyers/sellers are and filter out the noise in the same manner swings do. In the next post, I will talk about reading a chart with price action.

Where going to study: (WRB stands for wide range bar and is defined as a bar bigger than the previous 3 bars).
•WRB Hard-up/Hard down
•WRB Gaps
•WRB Tails
•WRB Outside bars
•WRB Mirror bars

Following Live: Theory Into Practice. April 2020

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Last month we followed the Nasdaq E-Mini futures and NZD/USD into historic volatility and crazy. We mapped and followed them calmly with simple swings the same way we always do, the only difference is that the swings were bigger. This is an important time to stabilize our practice of seeing markets calmly and objectively. I emphasize the word “follow” because there is a big difference between predicting and following. This Month we will follow the Dow E-Mini futures and EUR/USD.

Mapping The S&P E-Mini Weekly

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We all see things differently and mostly experience markets through past personal experiences which distorts what is going on. We especially get our buttons pushed during times of high volatility and uncertainty. Mapping markets simply and objectively always needs to be the starting point, to orient ourselves to “What Is” rather than what we want or don’t want. It’s not a trader’s job to predict markets, it’s our job to follow and join them no matter what they are doing. In this video, I map out the E-Mini S&P weekly chart along with a few stocks, AAPL, VRTX, AVGO, SQ, BAC, and GILD.