5-f

In this trendline method, Dr. Andrews once again used the number 5 as the basis
for locating a probable reversal area. He found this technique to be especially
useful whenever a clear, or obvious pivot count didn't show up on the price move
under study.
Trendlines are drawn using the course trendline method. When the 5th trendline i
s broken, the probability is high that the trend under study has ended. A minimedian line pitchfork, and/or sliding parallel could be used for pricing a tradi
ng order.
The accompanying chart of Compaq Computer is an example of how the trendline stu
dy could be used. The pivot count beginning at the October low is difficult to n
ail down. There were several small areas of congestion, but no sizeable correcti
ons while prices advanced. The count was unclear. By following the price action
using the course trendline technique however, the trader would have been alerted
to the possibility of a change of trend when the 5th trendline was broken in ea
rly February.
Try this technique on your own charts. When you're ready, please send me an exam
ple of your study.