80% Of Time - A Trading Edge You Don't Want To MissBonk / US DollarCOINBASE:BONKUSDTr8dingN3rdDo you want to know why trading with median lines, also known as pitchforks, can be so successful? It’s simple: Prices swing from one extreme back to the middle. From the middle, they often swing to the other extreme. What do we see on the chart? - The upper extreme - The center - The lower extreme So far, so good. Now let’s follow the price and learn a few important rules that belong to the rulebook of median lines/pitchforks, and with which you can make great trades. Point 1 The price starts and is sold off down to… Point 2 ...and from there starts to rise again, up to… Point 3 ...which is the center. And here we have a rule that is very important and one that you need to be aware of in trading to be successful: THE PRICE RETURNS TO THE CENTER IN ABOUT 80% OF ALL CASES If we know this, then we can stay in a trade with confidence. Point 4 The price climbed even higher but missed the upper extreme. This is the “Hagopian Rule” (named after the man who discovered it). And the rule goes: If the price does not reach the next line (upper extreme, lower extreme, or center), then the price will continue moving in the opposite direction from where it originally came. Phew...that’s a mouthful ;-) But yes, we actually see that the price does exactly this. From point 4, where the price missed the upper extreme, the price not only goes back to the center but continues and almost reaches the lower extreme! Now if that isn’t cool, I don’t know what is! And what do we have at point 5? A "HAGOPIAN"! What did we just learn? The price should go higher than the center line. Does it do that? Oh yes! But wait! Not only does the Hagopian Rule apply. Remember? "The price returns to the center line in about 80% of the cases." HA! Interesting or interesting? So, that’s it. That’s enough for now. Now follow the price yourself and always consider which rule applies and whether it’s being followed. How exactly do you trade all this, and what are the setups? ...one step at a time. Don’t miss the next lesson and follow me here on TradingView. Wishing you lots of success and fun!