Do Trendlines work?

It seems to me that trendlines used together with Pivot Points could help a trader pull the trigger.

But I would view the decision "points" as Bands....

I don't trade this way, but if I did, I would look at it this way...

Michael B.
 
Capamunt,

Thank you.

Very nice chart. I agree with your comments.

Any other insight garnered from experience in the markets is always welcome.
 
Quote from ElectricSavant:

It seems to me that trendlines used together with Pivot Points could help a trader pull the trigger.
More...

only the actual price pattern will dictate to me when to pull the trigger.

however, trendlines can help me know when NOT to pull the trigger. if price is about to hit a valid trendline, i can rest assured that there will be visible resistance there.
 
edit: or when NOT to pull the trigger :)


Quote from 50 cent:

only the actual price pattern will dictate to me when to pull the trigger.

however, trendlines can help me know when NOT to pull the trigger. if price is about to hit a valid trendline, i can rest assured that there will be visible resistance there.
More...
 
having a neigbor who runs a fund at a very well know company and having spoke with another guy who runs funds at the biggest company I can tell you that some managers acknowledge they use of techincals and some do not, but there is no doubt funds use basic stuff just like the person said on this thread earlier.

If only at the very least to gun their positons up after they have put on full loads. When a fund is near its few position size do you think it is wise for them to let it break a 50 day moving average or a trend line.

You do not think that these well educated guys have not heard of trendlines.
 
Quote from jem:

having a neigbor who runs a fund at a very well know company and having spoke with another guy who runs funds at the biggest company I can tell you that some managers acknowledge they use of techincals and some do not, but there is no doubt funds use basic stuff just like the person said on this thread earlier.

If only at the very least to gun their positons up after they have put on full loads. When a fund is near its few position size do you think it is wise for them to let it break a 50 day moving average or a trend line.

You do not think that these well educated guys have not heard of trendlines.
More...


At least a 50 day moving average is a fixed quantifiable constant(at the moment of calculation), trendline intesections are variables dependent upon user input.

Thus whatever meaning you get out them(trendlines) is purely discretionary.

Hey If it works for you fine , just don't attempt to pass it off somehow as scientific and expect anybody that has had HS algebra to buy into it.
 
Quote from John Merchant:

A fascinating thread. Interesting that no one has posted that he coded up intraday trend line formation, backtested it, and found it to have positive expectation. There's a reason for the absence of such a post. Hahahahahaha!
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Trend Lines are more a interepretion of the eye rather than a signal which can be detected Automatically through a Scan.

Wonder why people always are always looking for the easy way.

Cheers
 
One has the expectation the price will travel from here to there, and having reached its objective, change direction. Using a channel or pitchfork tool or just a couple of straight lines easily defines the trend, provided perhaps one's 'visually oriented'.

MetaStock's Standard Error Channel: applied at the 'begining' of a price movement, extend right and ADJUSTED as the price movement progresses. Copied and pasted for 'multi-lines' and 'Units' changed from default 2 to 1 or 4 etc, sometimes changing default 'Price Field' from C to H or L.
 

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