Jaenisch, ron beyond the andrews pitchfork

To contact the author , go to www.Andrewscourse.comHe can be reached via email at [email protected]

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Table of Contents

Introduction

The Median Line

The MLH lines

The MMLH lines

The SH line

The inside SH

The Schiff ML

The Modified Schiff ML

Modified Schiff Parallel Lines

The Warning Lines

Entering the Trade

The Andrews Trading Rules

The Real Andrews Rules

The Set up Setup

Entering the Trade

Getting Started with No Capital Risk

The Amazing Alan Andrews

REQUIRED LEGAL STUFF

IntroductionWelcome to the first book in the Andrews Babson Series.

It was over ten years ago , when that Alan Andrews personally wrote , “An Inspiring digest of thecourse methods” on the title page of the author ’ s first course manual. Since then a lot Much haschanged since then . The manual has gotten a lot bigger and now includes more rules and concepts.Many, like such as which pivots to use, for to name an example, which Alan had discussed withstudents at seminars and the kitchen table with students , but for some reason didn’t include in hiswritten rules. At As of this writing , the Advanced Course includes over twenty five videos, whichcan be accessed over the internet by Advanced Course students.

This book was written to give new and advanced traders insights that can be used in their trading withthe easy - to - use Andrews techniques. It covers some of what is the material covered presented inAdvanced Course.

If you are new to the Andrews techniques, you will most likely find yourself feeling very surprised athow something as simple as geometry can find s the turning points in the various markets.

Alan Andrews was a brilliant swing trader, who used a variety of setups. For many new traders ,swing trading is too difficult. It is far easier to have a “setup . ” . That’s That was the motivation whyfor writing this book was written . It covers the various Andrews lines that are related to the pitchfork, . followed by a discussion of his rules. Then it gets into discusses an easy to spot pattern (a set up)that professional traders look for. As you read the book , you will recognize the set up setup pattern.What will be is new will be is seeing how Andrews principles are applied from entry to exit ,without the use of the Elliott wave, Fibonacci , or any type of moving average - based indicator.

The book goes delves into how to recognize a setup that is found in charts that are with intraday, daily, and weekly time frames. All the while , it the book takes leads you through the steps where so youcan compare the standard way method of using the setup verses using the Andrews techniques. Whatthe author will show is how the Andrews techniques get in the market ahead of the crowd , with theintent of capturing greater profits.

Bonus: Link to a video that shows how to draw the lines with almost any charting software.

When my friend , Dr. Alan Hall Andrews , sent out the course material, it would start he includedwith the following letter as an introduction :

Welcome to the FFES (Foundation for Economic Stabilization) Case Study Course applyingprinciples of mathematical probability to the production of profits from prognostication.

The old Romans were wise enough to know that things change and fluctuate. They thereforerecognized that the best way to know what would probably happen in the future was to study howchanges took place in the past. To symbolize this, their two headed Janus was their chief deity with

one head confidently looking to the future as the other head had studied the past.

While it is true that few things are certain to happen in the future at a definite time , such as the timethat a certain person will die in the future, this mathematical probability has made tremendous profitsfor the insurance concerns that use it, as well as similar profits for investing individuals whoemployed it.

What are some of the important profit making principles that you are now about to learn to use . ? Oneis the application to price fluctuations of Newton’s law of physics to which the late Roger Babsonattributed his fortune of over $50,000,000 : t . T he Action and Reaction Rule that states these areequal and opposite. Another is how drawing a single line will enable you to know where the price ofany stock or any future is now headed and the probable time it will reach there. Then there areprinciples that enable you to switch positions so near to the turning points or pivots that start eachnew trend , that you may be constantly either long or short making money whether the price is risingor falling. Also in each weekly letter on the right hand column you’ll see some abbreviations that areheaded “reasons for actions taken . ” . As a course member now you’ll have the glossary of theseabbreviations so you can now verify on your own chart that every change of position from long toshort has a scientific reason. Have you ever seen elsewhere anyone making such informationavailable ? . Many of our members have taken other courses and we hope you’ll find , as they have ,that this is one of your s best in the best .

Besides the above principles that are unique to this Course , you’ll also find what we have beeninformed are in better ways of using other well-known methods, and , as an example , we’ve addedchannel lines to the popular moving average method in a way that you’ll find helps eliminate some ofthe whip - saws the usual moving average followers frequently find troublesome. Then variousmembers of the past have added improvements that bear their names, as you may do in this wide openfield of probability applications to price fluctuations.

So many investors have doubt as to the possibility of constantly predicting when and where priceswill turn. Therefore , the Marechal Chart is a good starting point for your studies as he was one of thefirst to use mathematics to show what the DJI would do during the coming 20 years from the time he

copyrighted his chart.

Of the two kinds of change in the Universe, flowing change and random change, we are indebted toNewton's invention of the Calculus that enables us to find out in advance the conditions that flowingchange will produce in the future. His discovery of the natural law that Action and Reaction are equaland opposite in the field of physics also has been applied in the Course to the random changes ofprice movements in free markets. This application of the Action-Reaction law enables you to learn inadvance where the probable reversals of price trends will come in the future. We owe thisapplication to the late Roger Babson, who credited this law as the basis for his fortune of over$50,000,000.

When we speak of any scientific law, we mean a statement that a relationship has been observedamong certain given conditions. We mean “if these conditions now, then those conditions will follow,and can be expressed mathematically”. We have “order” through which we can know the outcomefrom these conditions. We can therefore take advantage of this knowledge, and thereby progress andprofit.

So Newton was one of the great discoverers of this “orderliness” that underlies all of the Creator’swork, even if we are often slow in discovering it. Newton’s Laws therefore as stated above, havebenefited the users in both flowing and random changes.

The definition of randomness implies that future conditions are unascertainable, because there seemsto be a lack of order underlying such change. Such has been the almost universal belief, still prevalentwith most people as far as price prediction is concerned.

Marechal, also by mathematical methods of his own , was the first to demonstrate that there is alsoorder underlying the so-called random changes in price fluctuations. No professor in any university,no government economist, has ever been able to produce a similar chart showing as Marechal’sfamous chart, copyrighted in advance, what the Dow Jones Industrial Stock averages would do 18years ahead. As one of many other examples of this mathematical orderliness regulating the flow ofstock prices, the writer received from this remarkable man , now approaching 90, several monthsbefore President Nixon’s election, an accurate prognostication of what the DJ Industrial Averageswould be the day after Nixon’s election.

Many others , such as classmate Dewey’s Foundation for the Study of Cycles , have shown the“order” underlying stock and future prices. For example , the recent rise in price of Copper futureswas predicted by the cyclical studies of that Foundation several years before the advance took place.

So now and during each of the past ten years your Foundation for Economic Stabilization haspresented this Case Study Course on the predictability of prices, summing up the results of thirtyyears of research and inquiry among successful investors.

Feel free to write whenever you have questions and I am confident you’ll be happy you’ve joined thiswonderful group of investors who want to become “Good Stewards” as in the parables in Luke 19:11on and Mathew 25:14 on , if my memory is correct.

You investors are the life-blood of the economy. Without you there’s there’d be no banks, chains orfactories, etc. where a person could choose jobs, nor would the government be able to collect the

taxes they now get. Your importance has been neglected, too long.

Then came the most important part :

From then on , for a one year , , the course newsletter would arrive on Monday morning the coursenewsletter would arrive . In it were the “orders indicated . ” T t his was the section of the newsletterthat we students were to read to the broker on Monday. Initially, m M any of the students did not initially follow the directions to blindly invest , and watched for several months as the $5,000 grewmany times over in the weekly course letter.

Every week , the course letters arrived on Monday morning with the verbatim directions to giveverbatim to the broker. In addition , the weekly course newsletter also contained Andrews ’ notes asto why the trades were taken, along with a discussion of the use of course indicators and rules ,pertaining to trades that were in play at the time , and when a new trade was on the horizon.

In his writings , Alan always reminded the reader that the techniques, rules , and trades were allbased upon probability and science. Essentially , that there was nothing magical about what he did.

Table of Contents

Introduction

The Median Line

The MLH lines

The MMLH lines

The SH line

The inside SH

The Schiff ML

The Modified Schiff ML

Modified Schiff Parallel Lines

The Warning Lines

Entering the Trade

The Andrews Trading Rules

The Real Andrews Rules

Trading with a Special set up Setup

Entering the Trade

Getting Started with No Capital Risk

The Amazing Alan AndrewsREQUIRED LEGAL STUFF

Additional Resources

The Median Line

This was a line that was suggested by a student as once when Dr. Andrews was he discusseddiscussing Roger Babson and the Action - Reaction Method. Dr. Andrews believed that prices madeit to the median line 80% of the time. At the live seminar , Alan told us that the value of the medianline is that it showed what revealed the trend was .

A great benefit is that the median line it gives provides the trader with a tool from what that isessentially hidden geometry. To draw it the median line , the the extremes of three consecutivepivots are used.

The median line is calculated by finding the mid point of the distance between the last 2 pivot pointsand drawing a line from the first pivot through the midpoint.

Alan Andrews wrote” t Alan Andrews wrote, “T he MLs enable the user to be one ofthe few who can tell where the prices are headed, and the place they will reach about80% of the time, and when approximately that place will be reached. Slopes ofalternate MLs of comparable length indicate the trend.”The other two lines are covered next.

The MLH lines

For some reason , Dr. Andrews decided to label parallel lines with an H. These lines are easy toidentify because the starting points are the pivots that are the ones from which the ML does not come.

Andrews wrote , “MLH are places beyond which each day you place a buy or sell order before themarket opens the next day if prices pass through that MLH .”

The egg chart above was an example on a monthly chart he gave in his sixty pages.

Fortunately , in the private sessions the information was clearer in the private sessions , as you willsee in the Entering the Trade section.

The MMLH

Alan Andrews wrote:

Use the MMLH as the buy/signal when you expect a reversal because of a P5, or because prices areat an RL, WL, major ML extension, etc. Also use MMLH as a stop loss right after entry.If prices cross an MMLH and then move along it, enter when prices reverse by use of an SH.In some markets drawing MMLH from end of ranges is best to reduce whip-saws, but use closes todraw these MMLHs between usually.Converging lines that meet prices have high probability of trend reversal. MMLH lines can be drawnthrough the daily range after a gap.Two to four days is usually a maximum between 2 and 3 for an MML. P1 can be 1 day or more backfrom 2 and 3.The author has found that the MMLH is over used a i s a tool that is over used and leads to largelosses by novice traders. However, if it is used in conjunction with the setup described in this book,then massive over trading is typically avoided.

The mini - median line was a used by Andrews in lieu of having intraday charts. Instead of usingalternating highs and low pivots for the points from which to draw the median line from , he usedalternating closes.After P p rices broke br eaking beyond the MMLH this would signal a buy and then the stop loss is

past the other MMLH.

The Sliding Parallel Line

The sliding parallel is a line that is drawn outside of the MLH after the MLH has been penetrated andthe price continues as if nothing has happened.

This author has found that placing stops right outside the SH lines leads to whipsaws. It is not unusualfor prices to go outside of the lines and then go back inside again.

The Inside SH

This is a line that requires a vigilant chartist but can pay off big.

As you can see As can be seen , the ISH is parallel to the SH and there are three ISH lines in the SPYchart.

As prices went lower , they kept making lower pivots. Each resulted in an inside SH being drawn.

After three were drawn, in this case prices broke to the upside.

Once again , it can be seen that after three inside SH lines were broken , the trend took off to theupside.

The Schiff ML

The normal Schiff ML is a line the author rarely draws. This That is why the commentary and chartsbelow are from Dr. Andrews Below .

Below is a modified Schiff ML. As you can see As can be seen, the starting point is not under the topclose of September 12th September, but at the half way mark of the line sloping from that high to thelow close on Oct . ober 23. And it bisects the distance between the close of that date and that of thenext P of high close on Nov ember 13th. You notice Not ice that the low on Dec . ember 16 threversed the trend when it nearly touched the modified Schiff ML. Next , you see that there is alwaysa reversal or gap when prices reach any of the WLs. Note that the usual Schiff ML calls the first lowP on Nov ember 28 th and the modified ML indicates the low area on Dec ember 16th. But However,prices tend to pivot when meeting any of these ML s . But doesn’t the slope of coming trends moreclosely follow or H that of the mod . ified ML.

Where only Schiff MLs were used on the July Lumber 1982 weekly range chart , you see some profit- making signals by drawing the H and the WLs from the usual Pivots of the Schiff MLs. And , as Mr.Schiff told members , “ U u se the weekly charts for overall picture but zero in with the daily charts .” .

Notice the probability that there will be a good profit from the reversal each time prices reach an Hor a WL , as well as when prices again reach the original ML. For example , prices climbed back tothe 7 in two weeks to the Schiff 5-6ML , whereas if the ordinary ML had been used , there would nothave been any sell signal due to prices reaching the ML as they did at 7. The dotted line is for the Hor the WL, and the dash ed line for the ML. Notice Note how prices dropped back to the parallel of

that nearly horizontal H from 7 for a one week rise , signaling a big drop ahead which that carriedprices below WL#1 and almost to WL#2 and then a before ma k d ing e a 5 P Elliot rise to above thehorizontal H of Schiff ML5-6 and then started starting a new ST of 5Ps from 9 to 10 and reversing atthe WLs repeatedly , for good profits each time.

The Modified Schiff ML

The modified Schiff ML is one a line that the author draws under various conditions , such as thosewhere the median line + H lines are too steep and will most likely not contain the price movement.

The three points for the median line are used and the modified Schiff median line is drawn by firstdrawing a line connecting pivot A to pivot B and an additional line from pivot B to pivot C.

A line is drawn connecting the mid points of the two lines. It is then projected into the future.

The Modified Schiff MLH

This line is the parallel line from the Schiff ML that is drawn from the extremes. As you look atConsider these two lines you will and it soon notice becomes evident that one is a continuation of aline from points A and C and the other is parallel to it and drawn from point B.

The Warning Lines

These lines are parallel to the median line. If the distance from the median line is equal to one unit ,then the distance from the parallel to the warning line is always one unit, as is the distance betweensubsequent median lines.

Andrews liked to use the warning lines on monthly charts for finding pivots.

Entering the Trade

W hen it comes to technical analyses , t T here are primarily five approaches for entering a trade ,when it comes to technical analyses . A n example using Action /Reaction is given i I n each of thefour main categories an example using Action /Reaction is given .

1) Theme. This is when a fund manager or investor buys bonds or anything else in order tobring the portfolio into balance. Balance is different for each investor. A theme investor maybe a personal investor who is knowledgeable about a specific company or industry and placesan order based on specific beliefs about the company or industry.

2) Reversal point. Prices are forecast to go to a specific reversal point, which could be amajor reaction line , and a trade is put on at that point. To see an example that was posted onAugust 16 , 2012 , on CNN , go to http://ireport.cnn.com/docs/DOC-829743 . If you bring upa chart on TCX , you today you will see today that the low noted as R5 on the chart was notsurpassed and prices went up over 100%.

With this particular pattern , a reversal point would be the Andrews reversal point, which isnoted on the chart. Readers , that who understand the golden pivot rule , explained in theAdvanced Course manual , know how to recognize and forecast the location of this point.Some traders wait for further validation by waiting for break away pattern.

3) Break away. For the standard head and shoulders users, t T his occurs for the standardhead and shoulders users by waiting for prices to break below the neck line.

An MMLH , according to the Advanced Course rules, is available for use by traders a A fterprices turn where they should according to the Advanced Course rules . , an MMLH isavailable for use by traders.

The MMLH is a tool that is used for a break away trading style. Prior to using it, h H owever ,it is imperative that prior to using it the chartist first identifies that the pivot is in place andthat the use of this tool is warranted.

4) Pull b B ack. After the down move that occurs past the MLH , the market will often pullback towards the MLH.

5)

6) Andrews Dynamic Entry Method. This method was pointed out by Dr. Andrews in aseminar the author taped and assumes knowledge considerably beyond what is contained inthis EBook. It is discussed at live Advanced Andrews Course seminars and in one of theExpanded Andrews course videos. This approach requires on - going analysis every few barsby the chartist. But the results are well worth the effort. In many cases, this method I t seeksto enter the trade as close as possible to the price reversal of the major trend in many cases .It uses the same indicators as the voting method that will be described later. To see anexample , one would look at the entry near the second shoulder. If prices reversed accordingto the golden pivot rule , then an MMLH may be used for an entry. If they did not , thepotential trade may be ignored or a break away past the MLH or a pullback may be taken asthe entry of the trade.

7) The author tested out a voting methodology. This is a technique that is used by firms thatmanages assets of well - healed clients. The theory being that near each major pivot , themarkets announce ahead of time that a major reversal is about to occur and then , when it does, other Andrews indicators light up. One of these is prices bouncing off of a specific type ofreaction line. The highest certainty is when a high number of these things are true. When fiveor more of these things have occurred , then the probability of a strong long - term pricereversal occurring there is very high. When tops or bottoms occur , there are often less thanfive true conditions . In most of those cases , the counter move is not very strong. This iscovered in detail in the Andrews Expanded Course.

The chart with the R5 on it is a TCX ; , it was posted back in August , 2012 , to the emailgroup.

This one was rated a 5 because five of the potential nine conditions were true. There after ,prices went up substantially and have had not gone below the low point marked R5 a yearlater. To see an example that was posted on August 16 , 2012 , on CNN , go tohttp://ireport.cnn.com/docs/DOC-829743

The Rules for Trading Andrews Lines

After a course was ordering ordered the course from Alan Andrews, he would send out about sixtypages. One of them contained the rules that follow. The author spent time with Alan Andrews goingover the concepts and rules. What was It was most enlightening was going through the writings ofAndrews as he was observing and trading various markets. It became evident that a more effective setof rules could quickly be derived from that material. This is now available as the Expanded AndrewsCourse. What was learned privately from Dr. Andrews directly has been put in the videos and themanual of the Advanced Andrews Course.

Rule #1. Where Prices Are Always Headed Rule. You course members are among the fortunate fewto be who are able to draw a straight line and know that prices are headed toward that ML. Very fewinvestors have ever applied this ML principle of statistics to price fluctuations, and we've never seenthis in any books on investment. So very few know that prices are always headed toward the newestML.

Rule #2. The Rule of Coming Opposites Applies All Through Life. E.g., "Blessed at are they thatwho mourn (when the price of their stocks fall), for they shall be comforted." For the value of theirsavings that they had put into stocks will fluctuate up again.

Rule #3. "Turn Your Mind About," or "Rethink, For All Good Is At Hand." We should mentallyprepare ourselves for the coming reversal in prices , and other affairs. Here's one way , for example,that you members who know the ML rules can use: When prices are skyrocketing upward, we do thispreparation by thinking "If prices pivoted here today at this price, I'd draw a new ML bisecting thedistance between today's price and the price from which the rise started." And we know now that ifthis is a major pivot, prices will fall rapidly to this new ML. Profits from such drops are big andquick.

Rule #4. Rule for Anticipating Major P's. If , after a decline , you can count four previous P's, thefifth one is highly probable to will probably be the one from which a new trend starts.

Rule #5. Rule for Easily Detecting The Major P from which you can make a quick, big profit is towatch for the EP , IEP , and SEP formations.

Rule #6. The other reversal rule is that Prices Tend To Reverse At Or Near Any ML, as well as atany extension of each ML. And also at any MLH or extensions of MLH.

Rule #7. The Penetration Rule is that whenever prices gap past , or plunge through any ML, there is ahigh probability that they will quickly return to it temporarily , and then resume the trend they hadbefore they gapped or plunged through.

Rule #8. Price Failure Rule . ; When prices fail to reach the ML , as shown by a space between the Pof reversal and the ML, the probability is that this price reversal will go further than it did on it ' sapproach toward the ML.

Rule #9. The Price Failure Rule is negated when the next price trend is also a failure fails in to reach

ing the ML. This is almost invariably a signal (a shakeout) of a big, fast move in the directionindicated by this last "space."

Rule #10. Reliability of ML and (3) as CLs on weekly and monthly range charts is good for the MLsbut as since significant Ps may be hidden in any weekly range, you’ll have to make allowance that thismight happen s .

The Real Rules of Alan Andrews .

Alan Hall Andrews is best known for being the inventor of the Andrews ’ pitchfork and the conceptthat prices make it to the median line 80% of the time. This enables the forecasting of the slope andduration of trends in futures, stocks, commodities , and other data that appear s to be random.

During a civil engineering class at the University of Miami, Professor Andrews diverged from theclass topic and discussed how geometry may be used in the stock market for forecasting. His studentsshowed such excitement in for the topic , that he spoke to the dean about developing such a course.

The dean responded with a denial negatively , suggesting that one could never earn a living with suchan education , because there was no career path that was tied to the course.

After his retirement, Dr. Andrews started teaching the Action - Reaction Course privately.

His course objective was to teach by doing. He knew that the his students ’ interest in market analysisby his students would increase when they saw consistent profits in their accounts. Every Friday hewould go to have copies made of a newsletter he had typed up the day before. Besides providing anexplanation of the techniques he was using , his newsletters included What was a unique about feature: his newsletters was that his gave his students the a script to be read to their th e students’ broker son Monday morning along with an explanation of the techniques he was using . In addition to this, atleast once a month he would go into detail about a specific technique , citing rules. In addition to this,at least once a month he would include significant detail, with rules about a specific technique.

You can It can clearly be see n , in the excerpt s from his newsletters that follow , ( cut out sectionscut out ) that the orders were given in advance and the profits were significant. These excerpts arefrom the nearly 1 , 000 - page Andrews Expanded Course, which contains years of newsletters and

all of the documentation that this author has from Alan Andrews. It is from the Andrews’ originalwritings s in the nearly one thousand - page , expanded Andrews course that the Real Andrews Ruleshave been compiled.

During the time period from May 1970 to September 1970, it shows an increase from a start of$5,000 to nearly $20,000 from a start of $5,000 .

When Alan started writing his newsletter , he would use what was called onion paper at the time.This ultra-thin paper enabled him to make multiple copies at the same time , on a typewriter. Hiscourse took a momentous leap After with the advent of the Xerox copy machine was the way to makecopies, his course took an important leap . As a result of the The duplicator copy machine , he wasenabled him able to draw charts and send them to his course members, along with the ordersindicated.

What this This student of his found important were the explanations he would give when he did notfollow his “course rules” to be of great interest and significance. . This was very normal. Forexample , there was the SH , or Sliding Parallel Line rule.

Chart A shows an excellent , recent example of this recently . According to Andrews “course rules ,” after prices make a pivot , a median line with parallels is drawn. If it is noted that prices spent timeoutside of the parallel , then an SH is drawn. This SH is a line that is parallel to the median line andis drawn from the outside point. In chart A , the SH point is noted with <<.

The Sliding Parallel (SH) can be clearly seen in Chart B. The Andrews rule set say s that a stop isplaced beyond the SH Line.

Andrews wrote in his course rules , “Frequently, after crossing a lower MLH, prices continue to rise

along the MLH before the further drop that was signaled by passing through. So here you can use asliding parallel through the bottom of the range of the most recent day as a sell signal if prices dropthrough that SH.”

Chart C shows the incredible surge that occurs as a result of stops being hit when prices first broke break up through the SH line.

It is marked as break 1. O ver thirty years ago , Andrews wrote in his weekly course letters , overthirty years ago, that the way to trade it is to wait until the second break of the SH , , as since this isa more advantageous price point. As can be seen on Chart C, prices did break the SH line a secondtime in early July, which gave a buy signal according to what most would consider Andrews ’ realrules. These are the real rules because they are the ones he actually followed.

Another important real rule is concerns what to do if prices do not make it to the median line. Manythink that one simply buys and sells as prices break out of the pitchfork or what he would refer to asthe MLH. But nothing could be further from the truth ― , with some exceptions. Alan discusses it in avideo that Advanced Course members see, and it is a good concept that may be discussed in a futurearticle.

Combining the Andrews Lines with the W.D. Gann Head and Shoulders Pattern

By Ron Jaenisch of Andrewscourse.comBoth WD Gann and Alan Andrews used geometry and pattern recognition. Numerousarticles and books have been written about both. Even though some of the techniquesof Andrews and Gann are well known, there has been little discussion in combiningthe techniques. The advantages are significant. Gann techniques have a highprobability , and Andrews gives one the ability to enter the market with lower risk andsignificantly better risk - reward ratios.Alan Andrews stressed the importance of being a good steward of one ’ s funds. According to his writings , t T o make the funds grow was doing God ’ s work ,according to his writings . To that end , Andrews stressed the importance of takinghigh - probability trades near the start of a long move.In this article , the focus is upon a very well - known Gann pattern that is used bytraders , worldwide. It is widely known for his its head and shoulders technique.

As can be seen in chart #1 , the pattern is visible to the naked eye as prices are makingthe second shoulder. It is when prices break below the neck line that the Gann rulestrigger an entry signal is triggered by Gann rules .

In chart #2, one can see that by using the neckline as a centerline and the tip of thehead as the action line, the equidistant reaction line becomes the target under Gannconcepts. The entry point is the break of the neckline and the target line is the tradeexit point. For many traders , it is the right shoulder that becomes the risk or stop -loss area.For advanced Andrews and Gann traders , the static equidistant target line is not aprobable turning point.Using the entry point of prices going through the neckline , is responsible for the tradehaving a much less favorable risk - reward ratio , than is possible by using AdvancedAndrews concepts.

With the Advanced AndrewsCourse.com techniques , one can often enter the marketnear the second shoulder with an indicator like the golden pivot rule near the secondshoulder . Then , initially as a protective stop , utilize the down - sloping blue line inthe Modified Schiff ML , as seen in Chart #3.But what about the target for the trade? By utilizing an effective understanding of theproper use of the Andrews concepts and the proper interpretation of price actionsinteraction with the Andrews Pitchfork , the trade would exit for different reasons. Inmany cases , this enables the trader to exit past the target line.

Andrews held that most moves had five or more pivots. The pivots in the down moveare labeled in Chart #4. As you can also be see n , the normal Andrews pitchfork isdrawn. If prices show divergence in their relationship to the Andrews lines, the moveis often over.Note that in chart #4 prices went past the red median line as they made pivot 3 butcould not reach the same line at pivot #5. The Andrews technique signals an exit.Since many traders look for long signals in longer time frames, below there are aretwo examples with weekly charts in SPY below . The same trading logic was applied,and , as you can see a s can be seen , the Andrews exit can occur prior to the Ganntarget.

The end result of the extra work of including the Andrews lines and AdvancedAndrews Course concepts is that one can achieve a more favorable risk - reward ratio.Andrews hidden geometry techniques can be used by themselves or to enhance Gannand other technical analysis methods

Getting Started with No Capital Risk

According to the Author of the best seller , “ The Black Swan ” , the risk is greatest when it appearsthat there is no risk , is when risk is greatest . This is the point where what the trader or investorperceives to be a white swan is really a black swan. He suggests that it is more productive to handlevarious risks in innovative ways that lead to better long - term results , than to look only for situationsthat have no risk. Even putting assets in cash has risk. carries a risk if inflation erodes the value of themoney over time. In this case it is inflation risk, where the use of the money will turn less valuableover time.

Perhaps this is why strong markets are known to climb a wall of worry. They go up for reasonsunknown to most investors, in de spite of the fact that the risks are known by many the risks known bymany . In this chapter there will be a discussion of ways to eliminate various risks in trading and theinvestor will be shown and encouraged to utilize tools that result in no initial risk to their tradingcapital , initially .

There are various strategies that the investor or trader can use to deal with the various different riskfactors . ; f F or example, by using a trading simulator after developing a trading strategy, it’s timepossible to trade without capital risk by using a trading simulator . The obvious benefit is not riskingyou simply risk your time not your capital , only your time . Probably the most important reason is thatit gives you the opportunity to test various strategies and learn what the ir weaknesses are .Performing tests on historical data by developing the method on an early time period and then testingit on a later time period is not only interesting but useful to see what might have occurred in the latertime period. When that system development stage is completed , it is vital to do what is often referredto as real time paper trading.

With the advent of the internet , the paper trading has turned evolved into using parallel tradingsimulators. Investopedia.com is one of many free services that give traders the opportunity to investparallel to the actual market in a manner that requires the trader to do everything that would normallybe done on the actual market but , in a zero capital - risk environment. There are other free servicesthat permit parallel trading so that the trader can properly prepare and have a clearer sense as towhen it is proper for him he is ready to use risk capital in trading.

How long should one prepare by trading parallel to actual market activity trade as part of properpreparation with a simulator trading parallel to actual market activity ? The amount of time and tradeswill vary , depending upon a variety of factors . T t he first of which factor is the frequency of trades,but , in any case , it would take a minimum of six month for a new trader and a bare minimum of fiftybuy and sell transactions.

During that period , it is common for the trader to find good reasons to modify something that isinvolved with trading. At that point, the clock and number of trades need s to start all over again. Forsome traders , it means back to the original testing time period to see how the trading method wouldhave worked out years ago. Some investors find that they need to do this a few times in order tohave a model that fits their preferences and style. This makes perfect sense because if one puts capitalat risk during this time period , it is most likely lost.

Even with a rare white swan trading system that has nothing but winning trades, weaknesses , such asdistractions or other events that cause improper action , can hinder the trader and cause result inlosses. A nything , from bad price data to spilling coffee on a keyboard , Events can be an event thatcause s improper action can be anything from bad price data to spilling coffee on a keyboard . Toprevent market moves surprising you and destroying excessive capital, place a stop order.

The Amazing Alan Andrews

Alan Andrews liked to enter a position at the start of a new trend, ideally at the end of a correction. What did Andrews use to determine if a move had ended? It appeared appear s that he would look ata chart and somehow just know. When the author asked him to explain how he knew, he would drewdr a w several lines and show ed how the market had set things up for a reversal. He showed howhe did this with multiple charts and , in most cases , the logic for finding the reversal points variedslightly.

Doing this on historical charts with perfect 20/20 hind sight is easy , but what about doing this aswhen the market was i s reversing? To relieve convince doubters , he demonstrated his uncannyability each year during a period of several months each year . His objective was to turn $5,000 into$50,000 by trading futures.

To make it a bit more real for give those observing actual experience , he sent out a newsletter onFriday s . It contained contain ing a script to be read to the broker on the following Monday ( theorders indicated section). In this his newsletters , he also explained the signals used and exactlywhat the logic was behind the orders.

You can It can clearly be see n , in the two excerpt s from his newsletters , ( cut out sections cut outbelow) that the orders were given in advance and the profits were significant. These excerpts arefrom the nearly 1 , 000 - page Andrews Expanded Course, which contains years of newsletters andall of the documentation that this author has from Alan Andrews. It is only available to a limitednumber.

I n this demonstration , he was up by more than 400% o O ver the period of a few months . he was upover 400% in this demonstration. There were actually other time periods where whe n he did muchbetter.

How Andrews would enter the trades.

An examination of Andrews’ s writings in his newsletters shows that he used various entrytechniques. When he would use the MMLH entry technique for a period of months , he may have beendoing it to demonstrate that this is one method that can be used constituently. What he indicated tome was that the entry technique used was secondary to the primary analysis.

In his primary analysis , he would draw a number of lines to determine if the change in trend was athand. He would also look for specific patterns. He knew that all tops and bottoms were not exactlyalike and that the patterns the markets generated alternated. This is why he would not expect the astock, Forex , or futures price s to make it to the median line in every case.

This author believes that Alan Andrews intuitively knew when prices would reverse and not make itto the median line and reverse . He would take trades at points that he knew would reverse earliersooner . Was there a method to his know - how that he revealed in his weekly news letters?Research has found that when prices are in a counter trend movement for a few weeks, the area wherethe counter trend move will end is forecastle with the Andrews ’ Ore formula. This was discussed in

his newsletters in 1974.

In the above Hewlett Packard Chart, median lines are drawn when prices made a temporary up move,which was against the overall trend. In case A , price s made it up the median line drawn and , in caseB , prices did not. At the end of each of these moves, the reversals were signals which Andrewsdescribed.

In the case where they made the median line , they were entirely different than in the case where theydid not. In both cases , they were served as his indicators , that show ed ing him that the countertrend move was over.

Alan treated counter trend moves differently than with trend moves. With what you have learned inthis book, you could most likely verify that the A and B points are probable reversal points accordingto the Babson Action / Reaction method.

To quickly find all of the links below , go to www.andrewscourse.com and click up on the Videopage link.

To see the original Andrews’ original papers , go to: https://www.youtube.com/watch?v=MnrxXMCwhOI

To see Dr. Andrews and Ron Jaenisch , go to: https://www.youtube.com/watch?v=wgRkVFb3iLU

See the massive Andrews library of Andrews today: https://www.youtube.com/watch?v=qbGbS49bn08

If you like what is in this book, go to our site for more information. Join the free email group byclicking upon the NEW? link at the Andrewscourse.com website.

REQUIRED LEGAL STUFFGeneral Terms of Use

THE INFORMATION PROVIDED IN THIS DOCUMENT IS FOR EDUCATIONAL PURPOSESONLY.

IT IS PROVIDED AS GENERAL MARKET COMMENTARY, AND DOES NOT CONSTITUTE

INVESTMENT ADVICE. NEITHER THE AUTHOR NOR ASSOCIATES, DISTRIBUTORS,HEIRS OR

ASSIGNS SHALL ACCEPT LIABILITY FOR ANY LOSS OR DAMAGE, INCLUDING WITHOUT

LIMITATION, ANY LOSS OF PROFIT, WHICH MAY ARISE DIRECTLY OR INDIRECTLYFROM USE

OF OR RELIANCE ON SUCH INFORMATION. THERE IS NO WARRANTY OF ANY KIND.

Required Risk Disclosure – The Term “Securities” Shall apply to ALL Financial Instruments.

SECURITIES TRADING OR INVESTING CARRIES SIGNIFICANT RISK AND MAY NOT BE

SUITABLE FOR EVERYONE. THE POSSIBILITY EXISTS THAT YOU COULD SUSTAIN ALOSS OF

SOME OR ALL OF YOUR INITIAL INVESTMENT; THEREFORE YOU SHOULD NOT INVEST

MONEY THAT YOU CANNOT AFFORD TO LOSE. THE TRADING STRATEGIES DISCUSSEDMAY

NOT BE SUITABLE FOR ALL INVESTORS DEPENDING UPON THEIR SPECIFICINVESTMENT

OBJECTIVES AND FINANCIAL POSITION. INVESTORS MUST MAKE THEIR OWNINVESTMENT

DECISIONS IN LIGHT OF THEIR OWN INVESTMENT OBJECTIVES, RISK PROFILE, AND

CIRCUMSTANCES AND USING SUCH INDEPENDENT ADVISORS AS THEY BELIEVE

NECESSARY. THEREFORE, THE INFORMATION PROVIDED HEREIN IS NOT INTENDEDTO

GIVE INVESTORS SPECIFIC ADVICE AS TO WHETHER THEY SHOULD ENGAGE IN A

PARTICULAR TRADING STRATEGY. IN ADDITION, THE INFORMATION PROVIDEDHEREIN HAS

BEEN PREPARED FOR INFORMATION PURPOSES ONLY AND IS NOT AN OFFER TO BUYOR

SELL, OR A SOLICITATION OF AN OFFER TO BUY OR SELL THE SECURITIES MENTIONEDOR

PARTICIPATE IN ANY PARTICULAR TRADING STRATEGY. MARGIN REQUIREMENTS,TAX

CONSIDERATIONS, COMMISSIONS, AND OTHER TRANSACTION COSTS MAYSIGNIFICANTLY

AFFECT THE ECONOMIC CONSEQUENCES OF THE TRADING STRATEGIES DISCUSSEDAND

INVESTORS SHOULD REVIEW SUCH REQUIREMENTS WITH THEIR LEGAL, TAX AND

FINANCIAL ADVISORS. FURTHERMORE, SECURITIES TRADING ENTAILS A NUMBER OF

INHERENT RISKS; BEFORE ENGAGING IN SUCH TRADING ACTIVITIES, INVESTORSSHOULD

UNDERSTAND THE NATURE AND EXTENT OF THEIR RIGHTS AND OBLIGATIONS ANDBE

AWARE OF THE RISKS INVOLVED. THE INFORMATION OR DATA PROVIDED HEREIN ISBASED

ON INFORMATION GENERALLY AVAILABLE TO THE PUBLIC FROM SOURCES BELIEVEDTO BE

RELIABLE. NO REPRESENTATION IS MADE THAT IT IS ACCURATE, COMPLETE ORCURRENT

OR THAT ANY RETURNS INDICATED WILL BE ACHIEVED. CERTAIN ASSUMPTIONSHAVE BEEN

MADE IN THIS ANALYSIS, WHICH MAY IMPLY PROJECTED RETURNS WOULD BEACHIEVED.

CHANGES TO THE ASSUMPTIONS MAY HAVE A PARTICULAR IMPACT ON ANYRETURNS.

Required Disclaimer CFTC Rule 4.41

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT

LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DONOT

REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN ACTUALLY

EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVERCOMPENSATED FOR THEIMPACT, IF

ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATEDTRADING

PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED

WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY

ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSESHOWN.

Additional ResourcesThe second book in the series is Power Trend Investing. It presents Shows the combination of an easyto use Elliott wave method and a specific Andrews set up setup .

The third book in the series is Roger Babson’s Action Reaction Technique. Covers It c overs ARtechniques.

To join the free yahoo based discussion group, go to Andrewscourse.com and click upon…. NEW?

After this book is written we will create a video produced that covers the material in this book andmore.

…………...........

A private discussion group where in which stocks with the patterns shown in this book are discussedis available, contact [email protected] for details.

…………………….

What is covered in the Advanced Andrews Course , by Ron Jaenisch? Please go to theAndrewscourse.com web site for details.

This covers the many aspects of Andrews and Babson techniques and presents them in over 25videos.

The large color manual has additional techniques and goes covers from the beginning to advancedlevel s . The manual has in it contains the one rule that is used for finding all third (#3……expandedor not) waves , while the third wave is in progress.

Being a reader of this book entitles you to a discount. Ask for the Power Trend Discount.

……………………

Advanced Andrews CourseMention that you own this book and you will get a discount off of the course price.

The Course has everything that you need to trade with the Andrews and Babson techniques. We startwith the basics and get expand into very advanced techniques. This course covers levels 1-3.

Level 1 .... All the Basics of the Andrews and Babson Techniques . (material in thefirst 3 E books and much more including the golden pivot rule, two vital videos covering pivots etc.) .

Level 2 .... Applying the Andrews and Babson techniques to Various Markets.

Level 3 .... Setups and techniques only found in our course , that resulted from manyprivate conversations with Alan Andrews and our own computer - based research.

This is done with The course consists of over 25 videos (bite size-15-20 minutes each) presentedover a period of three weeks. In the mail Y y ou also receive an extensive color manual i n the mail .Some of the videos have show Dr. Andrews teaching a seminar. More are available fro f or viewingat live events. Many of the techniques in the advanced course are not available elsewhere and mayhave been learned at the kitchen table with Alan Andrews.

To keep things running well , you are invited to be in a private email group where in which you andother Andrews Babson students can ask questions and get answers with charts.

Every week several examples are sent to the private group members. Often examples that are sent outare include trades that someone in the group has made. The intent is to show working examples. Somecourse members in the email forum have over 10 years’ experience with the methods.

Our PT3 software as is a complimentary a gift to you, plus over and some twenty videos that are onlyseen by course members.

You are also able to attend a special , free , live free get - together held once a year.

In our discussion group , over 30% of the focus is up on intraday charts because of the quick learningfactor. You see the results quickly.

Now T t he course now includes about 20 videos. What do recent course grads say?

From India ... Ever since I joined with Ron Sir, I have has ha d some really successful trades, even a basicunderstanding of the subject has helped me a lot. Imagine what studying the Comprehensive would do.:)

From Erich (an American living in Europe who took the level 1 basic course over 10 years ago andwe gave him credit for prior payments towards the advanced course ) .

Erich : , As you can see As can be seen the videos are very new, compared to what you receivedyears ago. Please let me know what you think and how it compares.

Night and day. The old paper slides hit on the concepts. The videos give the actual execution.If I'd had these videos years ago, or the time and resources to attend your actual classes, my long timedream of trading as you do would have happened years ago.

Still, all things happen for a reason.

I enjoy trading more than anything and to actually know what I'm doing, minimizing risk, is the finalstep. One learns best from the best. Thank you for teaching this so long that I still have my chance to learn

from you.

From Richard down under ......... wow is an understatement . , If i I had only one thing to trade it would be (Signal description deleted).Now if other lines come in at this area it just adds to the strength I am doing minimal trading atm .With all the course lines I have learnt I am spending the next few months letting the market teach meso to speak. But the (Signal description deleted) is my bread and butter it is so simple and youquickly know when you are wrong and can get out with minimal damage

Hi Ron,Can you hook me up on the direct charts list please, love the charts. Thanks for the video the otherweek, great stuff.Thanks, u the bestDavid From the Middle East ..."

" I have been getting good results so far. Trading much improved-thanks." I in Brazil

" So far 1've traded using Andrews-Ron lines learned from the videos and although I've done somemistakes and learned from them I had a profitable month without much effort.

Thank You very much!"

A in Colorado ...."

" I have been going through the video’s slowly and trying to take notes. I am really enjoying them.I can see that you have done a tremendous amount of research on this material.

Thanks you for making this material available."

"Your Video on Gold was one of the best I have seen from your work.Regards"

Alaa ..... , England

From India ...........

Truth is, just been part of your yahoo mail group is a big return on my investment.

"Hi Ron,

Thanks so much for the Andrews Expanded Course, really incrediable and loving it. Just wondering ifthere is any other videos I have not viewed for the course, I've seen the group on Ewave. The recentBabson vids looked pretty interesting too.Appreciate how much you've helped me, it really means a lot."

David (From NZ)

From HH in South Africa, " Thanks Ron, Great videos" ........(regardIng the techniques) " have beenusing them - fucking beautiful"(excuse the language)."

Peter in Sacramento, "Thanks for the video, in fact thanks for all of them. This last one you wereclearer and more enthusiastic than some of the others, which made it all the more valuable."

Q:There is free material on the web.......what is the difference?A: A lot ........

The Andrews Expanded Course This course, contains contain ing the ORE indicator and many other publicly unknown indicators, isalso available. This is the store house of the written insights, newsletters , and documents that wehave been able to amass over the years. There are a limited number of copies that will be published.In addition to the three massive volumes there are also a large number of videos. The content isoffered with this course, where in which we interpret what Andrews ’ wrote wr itings and give offerour insights. The Expanded Course includes videos where in which wave theory and coursetechniques are combined to find the end of corrections and the start of powerful moves.

The Expanded Course contains many things . One of them is , including the weekly explanations oftrades by Dr. Andrews as he made the trades. The huge benefit of this is that you get to see whatAndrews actually used , in terms of indicators , , to produce success on a consistent basis.

The Expanded course includes videos where in which you learn about combining Andrews and theElliott wave.

As a bonus , we include over 20 expanded course videos They cover what we have discovered inthe written material and the application of the techniques. The videos cover material not covered inthe Advanced Course Videos.

The price varies , depending upon how many copies are left. For example , the first purchaser willhave paid less than the final , 100th purchaser , etc. At It is possible a t any time that a trading firm ,

that sees see ing the value in the indicator , may purchase all remaining copies of the course.

Video Original works before we copied it.

Video ....Part of what you get.

For more info contact [email protected]

The course is available only to owners of the Advanced Andrews Course.

Babson Professional CourseThis takes what is taught in the Andrews Courses as a base and adds upon it. The focus is to enter asclose as possible to the major pivot extreme, which is the start/end of the trend. This will be at pointsthat are later used for center lines.

Included in this course is are the Sand Bar technique, the double Xtr , and the Wash Out Technique,NTN , and , most importantly , a review of the ORE.

Intraday techniques are used in conjunction with other time frames for optimum results and veryfavorable risk - reward ratios.

Trader Trainer CourseShare your Andrews/ Babson know - how with others, we refer red to you by us . Travel to clientswho would like one - on - one, private training.

After spending several weeks in San Diego, you will have the opportunity to train others in thecourse methods. We will refer new course members to you and you may also bring in new coursemembers.

The Expanded Course is a limited edition; it has techniques not found elsewhere (such as the OREindicator) and also has several videos covering how the course methods interact with the variousElliott wave points.

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All charts on our website and in this book are courtesy of eSignal-Qcharts. This firm has aninteresting service that comes with their data feed , it that can save you hundreds in monthly dataexchange fees just for data for the asking. We have an arrangement with Scott Fitzgerald, a sales rep. I that i f you call him at 1.800.322.0940 and mention the Andrews Course , you will get pricingreceive a discount that is at least $25 off the monthly service charge , listed on their website. Hint:You do not need to actively trade or make a purchase from us to take advantage of this, just have an

account with one of the many brokerage discount firms like such as interactive brokers.