Do Trendlines work?
- Thread starter duard
- Start date
Some interesting lines which may have helped your trading for the day.
I admit the reversal (at least for me) was a surprise, however sticking to my principles of short term trading and letting the market tell me where to go I followed the reversal rather than fighting the am reverse. The other lines on the chart show the possibilities of lines drawn prior to market open.
Do I draw these lines--- No. I used to but found they just confused me. I like price only charts. But I know where they the lines are and sometimes I draw them if I think they'll be important but I don't mark my charts up like this before trading. I'll analyze and see the possibilities and as they unfold I add and remove lines as needed. Sometimes I may use a daily, weekly, or 60 minute chart and draw those lines on my tick data charts. (Multi-fractal analysis)
Good Luck. Nice moves today.
I admit the reversal (at least for me) was a surprise, however sticking to my principles of short term trading and letting the market tell me where to go I followed the reversal rather than fighting the am reverse. The other lines on the chart show the possibilities of lines drawn prior to market open.
Do I draw these lines--- No. I used to but found they just confused me. I like price only charts. But I know where they the lines are and sometimes I draw them if I think they'll be important but I don't mark my charts up like this before trading. I'll analyze and see the possibilities and as they unfold I add and remove lines as needed. Sometimes I may use a daily, weekly, or 60 minute chart and draw those lines on my tick data charts. (Multi-fractal analysis)
Good Luck. Nice moves today.
Here are some lines like I draw. These are what I term reversal lines. They are essentially short term lines anywhere from 1/4 of a session to 2-3 days (if you get follow-through the next trading day).
They usually change DAILY for the most part. That is there is often a trend change day to day during regular trading hours. Hence the close on the high or low of the day and the next session reverses as sentiment, profit taking, buying, news, or other "events" are factored into the market.
I use these "eyeballed" delineations as trendlines to help my mind get around a change in sentiment and give me a sense of direction.
I trade directionally but only in the direction which I feel the market has momentum. This works for me at least with day trading.
Perhaps this is all bullshit and there are many e.g. "Fooled by Randomness" and "(Mis)behavior of Markets" that say the human mind grasps for structure and patterns where they don't exist. But I believe they exist and hope to profit off these patterns.
They usually change DAILY for the most part. That is there is often a trend change day to day during regular trading hours. Hence the close on the high or low of the day and the next session reverses as sentiment, profit taking, buying, news, or other "events" are factored into the market.
I use these "eyeballed" delineations as trendlines to help my mind get around a change in sentiment and give me a sense of direction.
I trade directionally but only in the direction which I feel the market has momentum. This works for me at least with day trading.
Perhaps this is all bullshit and there are many e.g. "Fooled by Randomness" and "(Mis)behavior of Markets" that say the human mind grasps for structure and patterns where they don't exist. But I believe they exist and hope to profit off these patterns.
