| This chart shows you how to draw the Median Lines (ML) from each pivot (P). You start the line from each pivot and bisect the distance between the next two pivots extending the line for the next pivot will 80% of the time be at or near that ML. And when late prices meet this ML extension as shown in the months of September and November you see that you will have price fluctuations around the extension of the 6ML7-8. This enables you to be one of the few investors who always knows in advance the probable place where a reversal of the trend will come. |
| You see that a parallel has been drawn from Pivot 2 and another from
pivot 3. These are abbreviated with Capital letter H since that letter
has two parallel vertical bars. So when you want to distinguish them
from other lines you would letter them 1MLH or 2MLH, the numerals refer
to the number of the pivot from which that ML is drawn. When prices
drop below that H that slopes upward it signals Sell. And when prices
rise above its extension the signal is Buy. And the signal is the same
when the ML and its H slope downward. A profit is probable if you
reverse positions when prices meet the ML. Even when prices pass beyond
the ML a reversal back to the ML is probable even though that
penetration predicts the probability of a further move of prices in the
same direction as when they penetrated that ML. |
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