Quote from prash454:
And here is the Second Chart ( A close up shot to show more attributes of the Trendline).
Cheers
Nice chart.
It is a textbook illustration of several things.
I view the past trend in the graphic as depicted by the red channel.
In APR there is an illustration of the most basic process for position trading the index. That is, trends overlap.
When a person moves from a buying and selling style of trading, he/she then begins to view trend channels differently.
The shortest yellow arrow points to the confirmation of the prior reversal off the left trend channel line where the reversal transaction was made. This point in time and price also marked the beginning of the new trend which you, so far, have not annotated for some reasons.
To depict the current trend is very important for trading purposes. To not depict it puts a trader at high risk.
A while back there was a thread on trend exits. My comments there are really well illustrated by your posting this chart.
The short yellow arrow points to a FFT (Failure to traverse) at the time of the overlap of the red channel with the new emerging channel. See how this failure is amplified for your observation by the volume characteristic. the declining volume is a powerful indicator and precursor of what is coming up for making more money. Since one reverses on the left red line and begins to make money on declining volume (an usual thing for most tradrs, I hear), the end of the declining volume in DU (Dry Up) is a statistically significant place to observe how money making velocity can increase. The retrace after the FFT and after declining volume, turns into a REVERSAL. then after this most people finally see the BO of the prior channel and they enter the new trend as a shorting entry. Usualy they are screwed right off by not making any money but having to wait until the price finally reflects off the new trend line (there but not drawn in by the poster) in a while.
refer to the other post for some additional details. This post and that one will be very helpful for getting past not being able to annotate a chart such as this one.
The chart is a classic and is worth adding to your journals after you annotate it to show the new trend only a month old by now.
there are a couple of other indicator lines flowing along there. You can see they need their defualt settings adjusted greatly.
