Correct support line?

[Ol' Yella]

It doesn't matter what type of line you use (horizontal or diagonal, broken or unbroken) or if you don't use any lines at all.

There is no right answer, just as there there is no one right answer as to how to best pick up women. There are many ways to skin the cat.

It would be nice if someone could tell you to dress like this, act like that, and say these lines and the chicks will all dig you. But in dating, sports, AND trading--you gotta have GAME.

 

[athlonmank8]

What a good thread.

"Back to the fundamentals boys...... That's how IBM and Hilton were built"

Victor Sperandeo had a good definition btw. Especially when incorporated with multiple time-frames

 

[jack hershey]

Quote from Xspurt:

There are simple answers but not a comprehensive answer that is simple. The reason being there are a number of different drawing styles that are constructed using different structural points and are all traded in different ways.

What you show is a classic trend line that needs a 3rd point for confirmation. However if you look at the tops you find that your line is a mirror of the top resistance so you have a proven structural reason for your line placement and hence no need for a 3rd point to confirm the trend line support.

Then you have a rising flag channel with a downward break as the most likely resolution.

Lines positions can be located using a variety of price points, moving averages, mathematical formulas, price swing degrees, patterns etc.



It is just different placement and styles. Learn one, make it work and then you might want to add to your TA tools.

this chart has several errors.

 

[cactiman]

Quote from Laissez Faire:

It is true that he did not use charts, but he tabulated his data and kept extensive records.

Take a look here:

http://blessedfool.blogspot.no/2010/01/livermore-market-key.html

Very cool. Those yellowed pages look like the original edition!
Saying "I read somewhere" = forgot about having his book!
A re-read is in order....
Thanks for the memory trigger.

 

[cactiman]

Quote from Ol' Yella:

It doesn't matter what type of line you use (horizontal or diagonal, broken or unbroken) or if you don't use any lines at all.

There is no right answer, just as there there is no one right answer as to how to best pick up women. There are many ways to skin the cat.

It would be nice if someone could tell you to dress like this, act like that, and say these lines and the chicks will all dig you. But in dating, sports, AND trading--you gotta have GAME.

So you're talkin' 'bout Soulful Support and Righteous Resistance?
Of course if you make enough $ trading, the women will be there.
Check out the scene with Bud Fox in the 2nd "Wall St." movie!

 

[hedgeman]

A draw tool I like to use is Andrews' Pitchfork to help show the multiple support/resistance lines. You can modify this drawing by adding more lines.

 

[Xspurt]

Quote from jack hershey:

this chart has several errors.

I knew you'd think that as your students can never find the line so when it fails you call it a Failure To Traverse.

You never got to understanding why the failure has a missing point of contact, did you?

It's there Jack, staring you in the face but the problem is you use conventional wisdom when drawing trend lines so after all these years you completely miss the natural order that means minimal line placement with maximum contacts.

It is all about efficiency and your method of TL drawing is the most inefficient I have ever encountered.

Think about this word Jack: Failure.

That is where you need to have a line

At many points it is missing in your seamless method so you use verbose posts to convince yourself you do not use cw. You are stuck in a cw rut Jack and trying to convince everyone you have made the jump into a new paradigm. The missing point has an exact point of contact with a predictive line that fills the gap.

More study is required - back to the drawing board for you JH

 

[Xspurt]

Quote from hedgeman:

A draw tool I like to use is Andrews' Pitchfork to help show the multiple support/resistance lines. You can modify this drawing by adding more lines.

For the OP: this is a great tool that like all tools needs high level skills to make it work. A friend who trades with me is an ace with it.

 

[FreakofNature]

Technical analysis is awesome, for explaining the past and making newbies think it's just that easy.

 

[athlonmank8]

Quote from FreakofNature:

Technical analysis is awesome, for explaining the past and making newbies think it's just that easy.

FoN i think you need to do less talking and more listening.