Time factor in Wil Andrews graphic patterns
Alan Andrews and his followers, of course, take into account the time factor. So, in what way the time appears in the graphic techniques of Alan Andrews and his students? There are a number of techniques that can be useful to the trader. In Fig. 1 shows a typical example of Andrews ' pitchfork. After point C the price went to the Median line, but, apparently, the movement stopped. Perhaps this is just a small correction, and perhaps a change of direction. It would be nice to have some ability to evaluate the probability of reaching the Median line in the near future. Patrick Mikula proposes the following method. You need to project the segments AB and BC on the time axis and choose from them. Next you need to delay the received segment from S. it is Most likely that the achievement of the Midline occur during this time period. Fig. 2 and 3 illustrate the above. In our case, the segment BC is greater than AB, so we allocated in Fig. 2. (For visual convenience, we use rectangles instead of lines). Now, put this length from point C (see Fig. 3). The resulting picture is quite characteristic. If during this time period the Median line has not been reached, it is very likely that immediately after the expiry of the said time interval the direction of movement will change, as we can observe in Fig. 3. Let's consider a more complicated case. In Fig. 4, we can see that the price has not reached the Median line within the specified time interval (in this case, the segment AB). Therefore, immediately after the expiration of this time interval the price is set. However, if you look closely, in this picture you can see another one of Andrews ' pitchfork, on a smaller scale. At that time, as on the larger time scale, we see the failure of the price reaches the Median line, on a smaller scale, the fork worked great and the price reaches the Median line occurred just over a predictable time interval.