When I first found some of Dr. Andrews' work, I gave it little thought. It seemed simple - TOO simple. Behind the first appearance of simplicity, I quickly found out that there was much more behind Andrews' words. Most likely SEVERAL years of market study.

The method intrigued me, so I set up a study of the Median Line method to put it to the test. I wanted to know if this old fashioned method worked. I extracted some of the major observations Dr. Andrews' made and used them as a basis for the study. Dr. Andrews' was an engineer by training and often referred to the probability of prices acting according to his observations. So I thought, why not start there?

I determined the probability of price acting according to Dr. Andrews' observations for a few of the markets I liked watching. What did I find? To be honest with you, it really doesn't matter what I found.

Why?

Because I drew the lines on certain charts of certain markets and certain time frames under certain conditions. Would the results I found apply across all markets, all time frames, and all conditions? Perhaps. Could the way I drew the lines differ from the way others would draw the lines - probably.

The question I wanted to answer was,


Obviously, that information would be valuable.

I found many original students of Dr. Andrews who helped me extensively during my research. I submitted my original research/empirical study to Timothy Morge, an original student of Dr. Andrews and master Median Line trader.

Here is what Tim had to say,

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The result of my research is documented in, "Using Median Lines As A Trading Tool: An Empirical Study - Grain Markets 1990 - 2005".  My research helped me validate the value of the Median Line method in mapping out market price action. It also helped me understand the claims Dr. Andrews made in his original course and what they TRULY meant.

Because I realized the value in a step-by-step systematic approach to testing the method, I wrote, "Finding High Probability Lines", so others can follow the same path to better understanding the Median Line method of technical analysis.




Traders are always looking for high probability, low risk entry techniques. The Median Line method offers an abundance of these opportunities. But how do you determine price is at a level that will have a high probability of offering such an opportunity? How do you find high probability areas to enter and a quality target to exit?

Does this Median Line method work? Are the claims Andrews made true?

I am a firm believer that the only way to truly understand and accept the claims of others is to prove it to yourself. I can tell you I have found that Andrews' claim of price reaching the Median Line 80% of the time is true, but why should you believe me? Prove it to yourself!

"Finding High Probability Lines" is designed to do just that. The 74-page color book is filled with over 60 illustrations and lays out the framework to test the Median Line method in a simple and systematic way using just the Median Line itself. The book is based on my original research, "Using Median Lines As A Trading Tool: An Empirical Study - Grain Markets 1990 - 2005".

In addition, the parallel lines that Andrews' used are described in detail. The parallel lines often offer critical support/resistance levels when price passes through or returns from the traditional Median Line.

Acknowledgements	4
Part I.  Introduction	5
History of the Median Line	5
Why Study the Median Line?	6
Determining the Basic Probabilities	7
Requirements	8
Part II.  TheMedian Line	9
The Median Line - a Definition	9
Defining Pivots and Trend Lines	12
Median Lines as a Price Magnet	16
Andrews' Median Line Observations	17
Part III.  Price ActionNEAR the Median Line	18
Price Reversal NEAR the Median Line	20
Price Gap and Revisit NEAR the Median Line	21
Price Plunge and Revisit NEAR the Median Line	22
Price Consolidation NEAR the Median Line	23
Part IV. Price Failures	24
Part V.  The Study	26
Sample Size	28
Conducting the Study	29
Practice Chart	45
Part VI.  Study Results,Observations, and Conclusions	47
Study Results	47
The Trend Line Median Line	50
Conclusions and Observations	52
Part VII.  Adding theParallel Lines	53
Median Line Parallels	53
Sliding Parallels	55
Warning Lines	61
Part VIII.  The "Other"Median Line	63
The Modified Schiff Median Line	63
Part IX. Expanding the Term "Pivot"	65
Part X. Finding High Probability Lines	67
Which Pivots Do I DrawFrom?	67
Turn Support/ResistanceLines "At an Angle"	71
Putting it All Together	72
Part XI. Summary	74

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