Correct support line?

Quote from Xspurt:

Lots of traders don't use them for much the same reason as yourself. But if you look at a chart, PA tends to travel at a slant and vertical movement cannot be sustained.

So perhaps you might want to reconsider how PA uses lines to make its progress? Angulars are extremely powerful but are not easily mastered whereas S&R is much easier to pick up. Having said that, many traders are lost on S&R and even pay for someone to tell them the "magic levels".
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Yes, most Reco services just do the chart reading for their customers.
But that's the most fun part for me, so why pay them to do it?
Could you expand on: "So perhaps you might want to reconsider how PA uses lines to make its progress?"
I can see the angle of the uptrend channel in my mind (without drawing lines). Is that what you mean?
:)
 
Quote from cactiman:

Yes, most Reco services just do the chart reading for their customers.
But that's the most fun part for me, so why pay them to do it?
Could you expand on: "So perhaps you might want to reconsider how PA uses lines to make its progress?"
I can see the angle of the uptrend channel in my mind (without drawing lines). Is that what you mean?
:)
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A quick example...
 

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Trend lines do express sentiment in the market and what happened in the past, but they are highly subjective. Even if you draw a perfect trend line, it may break, only to snap back up, i.e., a false breakout. So, was that a false breakout or do we now draw a new trend line using the new swing point? If we do, was it not a false breakout after all? :)

Horizontal S/R from prior day`s high and low, 50% retracement levels, pivot levels, range expansion and range projections using volatility analysis is a more objective measure and at least not open to interpretation, but still, you need to learn how to read price around those inflection points and know if you should expect S/R to hold or not.

Nothing wrong with drawing a trend line, but don`t risk all your money on it. You need a little more than that. :)
 
Yip, it comes down to styles and technique. My friend RedTank loves broken lines - he won't trust a trend line that doesn't have breaks.

I like unbroken lines perhaps more than broken lines.

The key is you have to have a way to prove a line and if that is absent, throw your hat in the air. This confusion has resulted in many traders giving up on trend lines when they are imo as powerful as levels.
 
Quote from Laissez Faire:

Trend lines do express sentiment in the market and what happened in the past, but they are highly subjective. Even if you draw a perfect trend line, it may break, only to snap back up, i.e., a false breakout. So, was that a false breakout or do we now draw a new trend line using the new swing point? If we do, was it not a false breakout after all? :)

Horizontal S/R from prior day`s high and low, 50% retracement levels, pivot levels, range expansion and range projections using volatility analysis is a more objective measure and at least not open to interpretation, but still, you need to learn how to read price around those inflection points and know if you should expect S/R to hold or not.

Nothing wrong with drawing a trend line, but don`t risk all your money on it. You need a little more than that. :)
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Good points indeed.
:cool:
 
Quote from cactiman:

Thanks.
That was quick? Looks like a lot of work to me....
:)
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My pleasure. With some rules for placement you can soon gain experience and then you'll see them in an instant.
 
Quote from Xspurt:

Yip, it comes down to styles and technique. My friend RedTank loves broken lines - he won't trust a trend line that doesn't have breaks.

I like unbroken lines perhaps more than broken lines.

The key is you have to have a way to prove a line and if that is absent, throw your hat in the air. This confusion has resulted in many traders giving up on trend lines when they are imo as powerful as levels.
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Broken lower trendlines are safer to buy under than unbroken because the weak hands at the trendline have been taken out.

If there is no easily visible trendlines they are not worth worrying about because they don't exist. If the masses don't see the trendline easily it doesn't exist physiologically for enough people to matter.
 
I mostly trade longer time frames (2-6 months), so my lines tend to look more like this...
:)

I read somewhere Jesse Livermore didn't use charts at all.
He could remember all the price levels for each stock in his math-whiz mind!
:eek:
 

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