Do Trendlines work?

[taowave]

Quote from tradersaavy:

Let's see what happens in this real time chart.

The red uptrend line can be useful in many ways. A few examples:

If someone is long, may use it for a stop.

If someone is looking to go long, the line may be a place to buy.

Looking to go short, should price come back to the line, hug it, and then break down; may be a good short.

How can it be a useful point to place a stop to liquidate longs as well as a possible point to go long?

 

[austinp]

<i>"... and I think the deer hunting example was getting to (it was too long for my short attention span to read the whole thing)"</i>

Intraday trading takes a whole lot more time, focus and rapt attention than reading two paragraphs in here. I hope you are a swing trader on daily / weekly charts

 

[tradersaavy]

Quote from taowave:

How can it be a useful point to place a stop to liquidate longs as well as a possible point to go long?

Not "as well as".

Either, or.

And they are just a few of many ways that one could use the line.

 

[tradersaavy]

Quote from austinp:

<i>"... and I think the deer hunting example was getting to (it was too long for my short attention span to read the whole thing)"</i>

Intraday trading takes a whole lot more time, focus and rapt attention than reading two paragraphs in here. I hope you are a swing trader on daily / weekly charts

I usually hold a trade 1 - 5 days.

When I happen to be near my computer during the day and see a potential for 15 - 20 pts I'll scalp.

Thanks for the concern.

 

[davidmaria1]

You went long after the close above the trendline. Nice and clean.
No stoch, MA, trix trin vix or tiki. Love it.

 

[tradersaavy]

So here's the update so far.

Price has come back to the trendline, again, and is holding.

 

[austinp]

<i>"I usually hold a trade 1 - 5 days.

When I happen to be near my computer during the day and see a potential for 15 - 20 pts I'll scalp."</i>

1-5 days in the eminis right now is quite an entertaining ride. 1 to 5 hours is adventurous enough, both ways.

 

[tradersaavy]

So, this live example turned out to show respect of the trendline several times so far, and still counting.

Before price respected the trendline again inside the fourth circle from the bottom is where I made the live comments about a few things that a trader could have done.

the long suggestion would have played out nicely. Taking profits at the days high (or partials) would have given almost 75 points.

As of right now the trendline is still intact so, once again could be used at an area to put a stop beneath, look for a short, etc.

 

[davidmaria1]

Good call keeping the same trendline, thanks. Finally, someone who doesn't just spout nonsense and abuse.

 

[tradersaavy]

Here's another update.

From the looks of the chart now, the trendline is being penetrated compared to how accurately it was respected before.

Each trader will learn what this means to him.

To me it means, things are getting sloppy. Of course I don't know if it will break down from here or shoot up like a rocket, but for me sloppy means cautious.

It's kind of sloppily still following the trendline, for what its worth.