Skip to main content
Track Median line
4 / 19
Search the archiveLibrary
Library

1990issue C121-2

A failed median-line test marks the start of wave three

After wave one, a wave-two correction that never reaches the previous median line is treated as the indication that a third-wave advance has already started.

  • A median line is drawn from three consecutive pivots by projecting a line from the first pivot through the midpoint of the later two.
  • The median-line method states that price reaches the median line about 80% of the time and is described as often reversing when it meets that line.
  • In an Elliott five-wave thrust, the wave-two checkpoint is the end of the second wave and is treated as the typical start of a third-wave move.
  • A failed median-line test is a wave-two correction that does not reach the previously drawn median line, and it is used as an indication that wave three has started.
Entries in this reading2 entries
Current trackMedian line19 readingsElliott wave analysis94 readings

A checkpoint after wave one

This archive article walks through a combined reading of a median line and an Elliott five-wave thrust. The historical workflow watches the pullback after wave one. If that wave-two correction does not reach the previously drawn median line, the miss is treated as an indication that wave three has started.

How the median line is drawn

A median line is drawn from three consecutive pivots labeled A, B, and C. Mark the midpoint of the move from B to C, then project a line from A through that midpoint. Each pivot is a swing turn, also treated as an Elliott-wave end, and is used as a construction point.

What the median-line method expects

The median-line method states that price reaches the median line about 80% of the time. Price is described as often reversing when it meets the median line.

The wave-two checkpoint

An Elliott five-wave thrust is a directional price structure described as containing five or more waves. A common observation point in a five-wave advance is the end of the second wave. That wave-two checkpoint is treated as the typical start of a third-wave move.

The failed median-line test

The combined reading states that more than 95% of the time price does not reach the median line at the end of the second wave, which is also treated as the start of the third wave.

After wave one, a wave-two correction that fails to reach the previous median line is used as an indication that wave three has started. That miss is the failed median-line test: a wave-two correction that does not reach the previously drawn median line after wave one.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
4 of 19 in the Median line track
19951-10 pp.Next on Median lineConstructing three-pivot median-line channelsA median-line formation is a long center line plus two shorter parallels, and each of the three lines is treated as a candidate support or resistance level.
All readings on this track · 19 readings
  1. 1985Constructing median lines from graded pivots
  2. 1986Constructing median and action-reaction lines from pivots
  3. 1989Median line construction from three market turns
  4. 1990A failed median-line test marks the start of wave three
  5. 1995Constructing three-pivot median-line channels
  6. 1996Median-line pitchfork construction for trend and reversal tests
  7. 2000Nested median-line channels as falsifiable swing tests
  8. 2002Median-line versus speed-resistance on one trend
  9. 2003Independent witnesses: a median-line miss, a breadth average, and volume bands
  10. 2012Constructing oblique trendlines and median-line channels
  11. 2013Gold futures wave four, competing complexes, and written ratio tests
  12. 2013The weekly 1-2-3 map as a permission layer
  13. 2014Measured-move and daily pivot price-projection construction
  14. 2014Constructing median-line channels from a pivot
  15. 2016Median-line far parallel as a precommitted exit
  16. 2017How high is high: Elliott wave landmarks
  17. 2017A three-layer veto for a suspected third-wave high
  18. 2020Basic chart rules for Nasdaq trend reversals
  19. 2020Stacking wave counts, retracements, and median lines
By fieldWaves and ratios90 readingsBy year199092 readings
All 19 readings tagged Median line
Also on Median line5 readings
2013Gold futures wave four, competing complexes, and written ratio tests2013The weekly 1-2-3 map as a permission layer2017How high is high: Elliott wave landmarks2017A three-layer veto for a suspected third-wave high2020Stacking wave counts, retracements, and median lines