Why is the Median Line
method so intriguing?

I was first introduced to the Median Line method of price forecasting while working towards an MBA. I had learned of the “random walks” of prices and “efficient market” theories. I wondered if a method of technical analysis of the markets that was developed about 100 years ago and fine-tuned and taught over 40 years ago, would give similar results in today’s markets. If it did, what would that tell us about the markets?

I decided to write a research paper/empirical study on Andrews’ price forecasting methods. During my research, I found that very little information had been published concerning the methods. I did find many gracious traders who had taken Andrews original course and the few published works concerning the method. To save you the trouble of finding the quality information out there, I have listed the best works concerning Andrews' methods on the For Beginners page.

I also realized many misconceptions existed concerning the method. Many newcomers to the method tend to believe that they can simply draw a few lines on a price chart and have the same forecasting ability that Andrews exhibited (I was one of them). There is much more behind the surface of a reasonably simple method. Behind the few lines that experienced Median Line traders have drawn on a price chart is hours upon hours of study and experimentation.

I found as I studied various Andrews' techniques that my charts quickly became cluttered with lines and were difficult to interpret.

Analysis Paralysis!!!

I often found where price trends would change exactly where the Andrews lines forecasted, but I had so many lines on the chart, it was difficult to comprehend why and under what conditions the technique worked well. It was then I realized I needed to get back to the basics and first understand the Median Line.

I discovered a lot about the method through my research. First, I discovered what the Median Line method IS and what it IS NOT by putting the basic observations of the method to the test. The method is NOT the holy grail of trading.

I also found that through continued study, the method begins to “reveal” itself. I decided to put together a simple, straight-forward study of the Median Line based on my research to give others the opportunity to do the same.

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