tag:blogger.com,1999:blog-19588362389052314242011-11-28T12:30:32.804-08:00literature on trading, books and articlesI.M.H.Onoreply@blogger.comBlogger151100tag:blogger.com,1999:blog-1958836238905231424.post-51475486378085070122008-05-17T07:40:00.000-07:002008-05-17T08:12:40.116-07:00

       Every movement in the market is the result of a natural law and of a Cause which exists long before the Effect takes place and can be determined years in advance. The future is but a repetition of the past, as the Bible plainly states: "The thing that hath been, it is that which shall be; and that which is done is that which shall be done, and there is no new thing under the sun." -Ecol.

I.M.H.Onoreply@blogger.com0tag:blogger.com,1999:blog-1958836238905231424.post-90302768823247283052008-05-16T13:44:00.000-07:002008-05-17T07:35:51.857-07:00

Kind Of Charts       You should keep a yearly, monthly, weekly and overnight chart. You will find on the weekly chart that stocks will often reverse the minor trend and run up two or three weeks, but the third week it will not make a higher top or a higher bottom;yet at other times it will hold for several weeks without advancing above the level made in the first two weeks' rally. In cases of

I.M.H.Onoreply@blogger.com0tag:blogger.com,1999:blog-1958836238905231424.post-79619808887506686352008-05-15T02:44:00.000-07:002008-05-15T02:46:51.094-07:00

Andrews used the lines on the next chart but did not have a name for them. An appropriatetitle for them is Trigger Lines. On the chart below, there is a standard Pitchfork using pivots A, B, andC. There are two additional lines on this chart. One is a dotted line connecting pivots A and B. This isthe upper Trigger Line. The second is a dotted line connecting pivots A and C. This is the lower

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The chart on this page shows a Median Line drawn using pivots A, B, and C. After drawing theMedian Line, Andrews added 2 parallel lines starting from В and C. This creates an upper parallel lineand a lower parallel line. The three lines on the chart below make what is now known as the AlanAndrews Pitchfork. As far as I can determine, Andrews never used the name Pitchfork. It is included inthis

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Below are some of the rules Andrews provided for using the Pitchfork and the Trigger Lines.Buy Rule 1: When the price breaks above a downward sloping upper parallel line it is anindication of market strength and can be considered a buy signal.Sell Rule 1: When the price breaks below an upward sloping lower parallel line it is an indicationof market weakness and can be considered a sell signal.Buy

I.M.H.Onoreply@blogger.com1tag:blogger.com,1999:blog-1958836238905231424.post-69767978895937662932008-05-14T09:48:00.000-07:002008-05-14T23:57:27.460-07:00

Another observation Andrews made about the Median Line deals with situations in which theprice fails to reach the Median Line. In these situations, Andrews observed the price reverses directionand moves a greater distance than the size of the previous swing. This observation can be used to seta price target after the price fails to reach the Median Line.Median Line Trading Principle 4: If the

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Andrews made several observations about the Median Line which are important for traders.These are not absolute rules; they are general observations made by Andrews which will help a traderknow what to expect when using the Median Line.Median Line Trading Principle 1: When a Median Line is drawn from the most recent swings theprice should return to the Median Line approximately 80 percent of the

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Andrews always held that the Median Line is based on the laws of physics. He believed thatprinciples from physics could be applied to financial markets. The diagrams below show theprinciple on which the Median Line is based. These principles are that natural cycles return to theircenters, and for every action there is a reaction.The top and bottom diagrams on the left show a sine wave cycle which

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The trendline for which Andrews is best known is the Median Line. The chart on this pageshows an upward sloping Median Line. Three pivots are needed to draw a Median Line. Two of thepivots must be the high and low of a price swing. The mid-point between these first two points mustbe calculated. This is calculated through simple division and addition. The range between the high andlow is divided

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Andrews used a trendline that he named the Multi-Pivot line. This is a trendline which runs throughmore than two pivots. This trendline does not have to run through the exact high or low of each pivot; itonly needs to be close to each pivot. Andrews believed that the greater number of pivots through which atrendline runs, the more important the trendline is for finding future support and

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The chart below shows a trendline drawn from pivots A to B. This line has two attributes. It isupward sloping and is connecting a low and a high pivot. Also on this chart is a trendline connectingpivots С and D. The two attributes of this line are downward sloping and connecting a high and a lowpivot.When a trendline connects two pivots of the opposite type such as high to low there are

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tThe chart on this page shows four trendlines. One of the trendlines is connecting pivots В andC. This trendline has two characteristics. It is upward sloping and is connecting two high pivots. Thisline is identified as an upward High to High trendline.Also on this chart is a trendline connecting pivots A and D. The two characteristics of this trendlineare that it is upward sloping and is

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In this book we will use the standard financial bar chart to present the trendline methods.The chart seen below is a bar chart. The price scale is on the left side. The time scale is across thebottom. Each vertical line is an individual price bar. In this book we will often make reference to aprice pivot. A pivot is a point where the price bars change direction. On the chart below there is alabel

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I.M.H.Onoreply@blogger.com2tag:blogger.com,1999:blog-1958836238905231424.post-89685646485206666792008-05-10T11:31:00.000-07:002008-05-11T04:41:48.234-07:00

Section 1: The Best Trendline Methods of Alan AndrewsIntroductionI am fortunate to have been involved with trading before computers completely took overtechnical analysis and I have read many trading books written between 1950 to 1980. There is amuch greater discussion of trendline methods in thqse older books than there is in trading booksof today. My first encounter with a reference to Alan

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