Correct trend lines

[shortskirt]

You are a fan of LBR? I liked her interviews in Floored.

Your inquiry is an important one. The utility of having price boundaries that you trust cannot be overstated. It's good that you are using charting software that allows for precision in the slopes of lines. The value of a "snap to" software feature seems to be lost on a lot of programmers who don't trade.

Looking at how others use lines to trade so that you can compare may have some benefit. No doubt there are a lot of examples available out there, most of them bad. If you learned the nomenclature, you could follow the better ones. This is probably stating the obvious, but I would avoid examples where the guru uses free charts downloaded from the internet that look like they've been annotated with MS Paint.

Yes used to follow LBR years back.

 

[shortskirt]

SS,

1st attachment - I took your rendition (or as close a approximation as I could) and extrapolated the next set of lines

2nd attachment - I drew the lines how I see it

HTH

RN

Thanks for the chart Redneck. The lines you have drawn look obvious to me now but i think it'll take me a while before i see it as clearly as you.

When you draw the 2nd channel do you still follow the first or would you remove those lines?

 

[dbphoenix]

Yes i have been on and off this forum for quite a few years! I have looked at a lot of charts over those years. Often those charts have had many different indicators on them like MACD, CCI, MAs etc but not trend lines, so i really have not worked at drawing correct trend lines until recently.

To me the purpose of a trend line is to help me identify who is in control. Whether that's the buyers or the sellers. I realize that i don't necessarily need lines to show me that, but i'm not able to see it as clearly by just looking at price.

I like to think that the upper and lower trend channel lines are places at which buyers and sellers may step in and create more supply and demand.

Your questions were addressed here.

 

[Redneck]

Thanks for the chart Redneck. The lines you have drawn look obvious to me now but i think it'll take me a while before i see it as clearly as you.

When you draw the 2nd channel do you still follow the first or would you remove those lines?

You're Welcome

You can always draw some more lines, on other charts, and post em - then we can review (a practice makes perfect kinda thing )


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As long as the first channel is in play (which it is) I'd leave it


RN

 

[murray t turtle]

I'm trying to figure out how to correctly draw trend lines. I think i'm drawing them correctly but would love a second opinion.

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Yes , you got the 10 day uptrend mostly right /trend lines/right.

I like to look at moving averages ,also, 10 year charts.....;
good-looking uptrend. But as someone who like to look @ 50 days of data also .;
very ,very old uptrend.Sure its a bull market you know;
but taking out Jan lows shows[proved ]more more risk.

 

[athlonmank8]

I seldom frequent this site any longer, any even less frequently post.

However your chart is a blast from the past and brings back fond memories. I haven't seen HL only bars for years.

It appears you once followed the AHG thread, so I am compelled to respond. The username shortskirt also helps, I am a sucker for the ladies lol...

anyway, I have a great respect for Anek. He was instrumental in developing my TA skills and success as a trader. In that regard, I promised to never divulge any information he shared privately, which I will always honor. So I do not post chart's with TA analysis. The concepts are not mine to share...

That being said.... I believe that the TL concept was originally shared in the AHG thread, so I feel comfortable commenting on it.

In this particular case, the key concept is Trend line fanning. DBphoenix threads are very good reference. I suggest you review his thread

In your SS, I would move the TL because a HH was plotted and the original TL was breached twice. If it were only breached once, I would monitor it along with the newly drawn TL.

Regarding your copied "channel TL" imho the correct starting point is always between the first two anchor points, your TL has three touches, so you "could" move it to the place you started yours. Your example is an old obvious trend, you could actually treat it as an ascending triangle, rather than a parallel channel, just a thought...

As a rule I normally do not move channel lines, if a TL is fanned, I may create a new channel line. Then either monitor both if still valid by my rules or suppress the original.

TA is more art than science.

Good luck and watch out for brisk winds. lol...

If DB, NoDoji respond to your post. I would pay attention, there are a few others. but the majority of ET, I would take with a grain of salt, actually a cup of salt...

Is Anek still around?

Victor Sporendeo covered trendlines as well.

 

[shortskirt]

You're Welcome

You can always draw some more lines, on other charts, and post em - then we can review (a practice makes perfect kinda thing )


=================

As long as the first channel is in play (which it is) I'd leave it


RN

Ok so here's another chart from this evening. I find it helpful to draw the trend line that occurs within the larger channel also. It seems as if sellers are testing that trend line (the orange line) and the next obvious place where buyers may step in would be at the lower blue line around 1836. I notice that price seems to be bumping up against the bottom of the trend line also for the last few hours.

 

[Redneck]

Ok so here's another chart from this evening. I find it helpful to draw the trend line that occurs within the larger channel also. It seems as if sellers are testing that trend line (the orange line) and the next obvious place where buyers may step in would be at the lower blue line around 1836. I notice that price seems to be bumping up against the bottom of the trend line also for the last few hours.

Make a channel big enough..., it’ll encompass everything – but lost in the expanse is what price is saying... and any potential for it to be useful (imo)


Made to match price - a channel will enhance the story being told (also imo)

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To review what’s being said (by price);


Price headed up in relatively tight & steep trajectory (which translates to upward momentum.., with no major indecisiveness (selling / fighting the up move))

It then broke out to the down side to 1802.47.., but immediately headed up and back into the initial channel (up move momentum has returned and remains intact - so far)

Between 1832.49 & 1840.12 price started ranging = momentum drying up / indecision showing up

Price then made a new channel.., with a decreased trajectory…, and much wider channel – meaning = momentum is not as strong as before (its waning)… and indecision (selling ) is increasing significantly (hence the wider channel)

Currently price is sitting near the mean of this wider channel

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Aside;

I could..., at this point..., make some prognostication of what all the above may be foretelling

I’m not in the business of predicting.... nor do I know what is going to happen - ever


hth

eta - made another view you may like better - it tells the same story

RN

 

[speres]

I'm trying to figure out how to correctly draw trend lines. I think i'm drawing them correctly but would love a second opinion.

Hi,

I tend not to draw TLs any more and just look at the hhs and lls of swings as these are the real reason why tls are formed or drawn

 

[shortskirt]

Assuming that my lines are drawn correctly it seems as if we're in the middle of the channel. What's the best policy in such a situation...to sit on hands and wait for price to move to the upper or lower channel lines?