Lesson 5-b

Hagopian's Rule

This technique was sent to Dr. Andrews by one of his early course
members, a Mr. Hagopian. Dr. Andrews found it worked so well with his
median line technique that he decided to include it in his course.
Here's how he explained Hagopians's rule:
"When prices reverse trend before reaching a line at which probability
indicates such a reversal could start, proper action may be taken in
buying or selling as soon as prices cross the trend line they were
following before reversing. A large countermove is indicated and
confirms the first action as above when prices cross the first trend
line sloping away from the median line."
In the previous lesson part you studied the sliding parallel line and
saw examples of how Dr. Andrews used it to confirm a price failure to
reach a median line. In this part, you'll learn how to apply an
additional price failure confirming signal....Hagopian's rule.
Please refer to the chart labeled "Hagopians Rule" which is attached
to this lesson part. Two examples of Hagopian lines are shown on the
chart; the one at the top illustrates how the technique confirmed a
price failure to reach an up trending median line, the one at the
bottom illustrates its use with a potential price failure to reach a
down trending median line. You'll notice in both examples that the
Hagopian line is the first trend line that slopes away from the
median line. That's an important part of this technique as mentioned
above in Dr. Andrews' explanation.
To reiterate, in the example at the top of the chart, prices crossed
the Hagopian line after a failed attempt to reach the median line,
signalling a countermove was underway. In the example at the bottom of
the chart, prices are hugging the upper parallel line and have not yet
reached the median line, indicating a price failure could possibly
take place. A Hagopian line is in order.
When you're ready, please send a chart study showing Hagopian's rule
as you understand it.