this $oex seems to be a much cleaner chart to run against the ym then the $spx
Do Trendlines work?
- Thread starter duard
- Start date
this $oex seems to be a much cleaner chart to run against the ym then the $spx
Thanks for your thoughts.
"the best way to make money in the market" suggests that there is one. Remember, as you have already eluded to, each trader has what works for them. One best way for one trader may be total noise for another trader. My tradersaavy posts on this site show how I have sought out strategies, tried some and then found what I have been using now for a couple years. It works for me and is very simplistic, relatively speaking. And yes it uses single trendlines (angled or horizontal) and is profitable for me.
I do believe (or I wouldn't be sharing the information) that trendlines can be extremely useful for those who are seeking trading strategy ideology. Maybe trendlines could be added to an existing strategy for using trailing stops;or profit targets;or adding to positions;or partial profits, etc.
The attached chart shows a pretty significant support trendline. The support area / trendline has been respected several times and even halted todays avalanche with quite a bounce .
So what ?
Well, what I will watch for is a consolidation at the line and then a break below for a short. I am not predicting this, this is what I would like to see to set up a possible short scenario.
What would constitute a 'break' below ?
Can't answer that right now. Have to see what the actual consolidation looks like and then find a point if it breaks south that says, yeah, this is definitely through the support on the timeframe that is being watched.
On the upside, the area that gave me a long position (which was posted on one of these threads) at 13700 could now be good resistance again.
So what ?
Well, what I will watch for is a consolidation at the line and then a break below for a short. I am not predicting this, this is what I would like to see to set up a possible short scenario.
What would constitute a 'break' below ?
Can't answer that right now. Have to see what the actual consolidation looks like and then find a point if it breaks south that says, yeah, this is definitely through the support on the timeframe that is being watched.
On the upside, the area that gave me a long position (which was posted on one of these threads) at 13700 could now be good resistance again.
This happens very frequently:
A strong up or down trend,
once the trendline is broken,
price retests the line (green circle in attached chart),
and then bounces hard.
Being that a big part of trading is finding events that occur over and over again, this should be able to somehow be made into some useful information for a trader. I don't have a strategy for it personally except that, based on this chart, if one were long from the trend break, it may be used as a stop area (for one example)
On this chart the break of the trendline from the small two bar consolidation at the line moved approx 50 points and the retest and bounce moved over 50 points from the actual retest line to the peak.
A strong up or down trend,
once the trendline is broken,
price retests the line (green circle in attached chart),
and then bounces hard.
Being that a big part of trading is finding events that occur over and over again, this should be able to somehow be made into some useful information for a trader. I don't have a strategy for it personally except that, based on this chart, if one were long from the trend break, it may be used as a stop area (for one example)
On this chart the break of the trendline from the small two bar consolidation at the line moved approx 50 points and the retest and bounce moved over 50 points from the actual retest line to the peak.
I agree that my prior post could read as suggesting that there is a "best way to make money in the markets" and further agree that we must each find what works for us. What I meant to say (and did not do so clearly) is that I am entirely skeptical of someone who says that a particular TA methodology is the best. The reality is that most TA protocols are a combination of things and for myself, that combination involves price, volume, time and EMA's. It, like yours, is rather simple but it works. I continually try to, and occasionally do, make it better. An important component of the whole schmear is discipline with respect to the rules for entering, exiting and changing direction. Without discipline you are chum for the sharks.
It seems clear that you have that necessary attribute to your trading method. Thanks for continuing the discussion.
lj
if we keep heading down it looks like that 13350 area is pretty good support
Most technical indicators (squiggly lines) are worthless. I have backtested most of them...
they look different for different timeframes and settings.
you can sometimes squeeze out a valid trading system
through some combination of them. but system will usually fail over time and it is a crutch.
as for day trading...indicators are just too slow...they get you
in right when you should be getting out. (but reversing them
does not work either) .
Some traders talk about divergences...this is a mirage.
Divergences reflect a differing rate of change from one one high to another.
The misunderstood point with trendlines is that the markets
don't always move straight lines...they trend, curve, take off, chop, sleep etc. you have to adjust your trading for that.
Good Luck...
they look different for different timeframes and settings.
you can sometimes squeeze out a valid trading system
through some combination of them. but system will usually fail over time and it is a crutch.
as for day trading...indicators are just too slow...they get you
in right when you should be getting out. (but reversing them
does not work either) .
Some traders talk about divergences...this is a mirage.
Divergences reflect a differing rate of change from one one high to another.
The misunderstood point with trendlines is that the markets
don't always move straight lines...they trend, curve, take off, chop, sleep etc. you have to adjust your trading for that.
Good Luck...
stopped at 13357 funny how that works
