Median line construction from three market turns

How the line is built

A median line is a straight line drawn from a prior market turn through the midpoint of the segment joining the two most recent turns. A market turn is a swing high or swing low used as an anchor when constructing the line.

The construction uses three successive turns, labeled as a prior turn and the two most recent turns, plus the midpoint of the latest connecting segment. The last two market turns are connected first. The midpoint is the halfway point of that straight segment. The median line is then drawn from the prior turn through that midpoint.

Later interaction with the line

The source states that prices reach the constructed median line about 80% of the time.

When prices pass through the median line rather than stopping at it, the source says a return toward the line and then a continuation in the original direction is a frequent sequel. That passage through the line is an overshoot: a move that crosses the median line instead of stalling at it. The later return is a retracement toward the median line after prices have already crossed it.

Editorial reading

Editorial interpretation: read the median line as a three-point construction problem rather than a finished forecast. The two recent turns define a segment. The midpoint of that segment is a hinge. The line from the prior turn through that hinge is a testable price path. The teaching goal is to keep the geometry falsifiable. Prices either reach the line, overshoot it, or fail to arrive.

Daily and weekly charts

The same three-point construction can be applied on daily or weekly charts. The source illustrates the construction and later price interaction with the median line in four figures.