Price behavior near the Median Line.

Price Behavior Near the Median Line

Andrews suggested significant price behavior occurrs when price approached the Median Line.

Andrews original course states,

“Price will either reverse on meeting the ML or gap through it.”

Median Line Price Reversal

Median Line Price Gap

We can also find where Andrews suggests a price “plunge” as similar to a price gap. A price plunge is characterized by a long price bar.

Median Line Price Plunge

We also find in the course where Andrews states,

“And when late prices meet this ML extension…
you see that you will have price fluctuations.”

Median Line Price Consolidation

Often price will “oscillate” around the Median Line in a somewhat symmetrical fashion. The fluctuations can be considered price consolidation around the Median Line.

To summarize, price behavior near a properly drawn Median Line can be described by:

1) Price reversal
2) Price gap or plunge
3) Price consolidation

Back to the Median Line

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