# Finding Good Vibrations can Lead to Great Profits (Part 1)

05/19/2008 12:00 am EST

Focus:

Timothy Morge

President, MarketGeometry.com

My years of schooling at the University of Chicago Physics Department taught me that all parts of the universe vibrate with energy. When I use median lines to show me the probable path of price, I am using the mathematical relationship between three alternating pivots to give me a sloped line of force shaped by the over-riding vibrations of that particular market in that particular time frame. Simply put, if I can tune in and identify the 'good vibrations', I have a good chance of knowing where price is going and where it will likely stop on the down side and the up side.

Let me show you what I mean:

This is a fifteen-minute day session only bar chart of the e-mini S&P 500 futures. After a nice down move, price traded higher, gapping open higher two days in a row and those gaps remained unfilled, a sign of strength. To determine the probable path of price, I used a special median line, a reverse median line. A traditional median line uses three alternating pivots to determine a center or median line and then the upper and lower median lines are drawn parallel to this center line, off of the extremes of the 2nd and 3rd alternating pivot. Reverse median lines use a center line or median line that is determined by connecting multiple highs and lows; then the upper and lower median lines are drawn parallel to this center line, but they are drawn off of price extremes above and below the center or median line-in essence, the reverse median line is drawn backwards, although once it is drawn, it is used like a traditional median line for trading purposes.

More tomorrow in part 2.