Foundations of Trading Part 3: Andrews Median Line Tools
The Andrews Median Line is a simple tool that can be applied any instrument in any time frame. It beautifully describes and projects the process of a swing cycle. The Median Line simply bisects a price swing using the relationship from any 3 alternating pivots and then projects price back to its median to complete the swing cycle. If there are two extremes, (opposites) there must also be a center. I refer to Median Line tools cause there are a few basic types of Median line sets along with a some other lines tools. With a thorough understanding of these tools and swing structure we can use them very purposefully fro particular situations.
Median Line Tools
- Standard Median Line set
- Pendulum Median Line set
- Modified Schiff Median Line set
- Reverse Median Line set
- MPL – Multi-Pivot-Line
- Action Reaction Lines
- Sliding Parallel
Understanding the Median Line Setup
A Median Line Setup is a a set of conditions that come together in such a way as to allow you to realize your objective. The thing to remember is that the set-up always serves the objective, not the other way around.
As traders, we tend to lean on setups and turn them into something dead and mechanical. It won’t work, plain and simple; there are too many moving parts. The set will use you, without an understanding of price flow and the attendant conditions. It’s about using your tools, not the other way around.