Do Trendlines work?

[mu200411]

Trendlines like paintbrush, are user dependent.
Rembrandt’s Paintbrush and mine may produce different results.
Or they must.

 

[johnpinochet]

Quote from mu200411:

Trendlines like paintbrush, are user dependent.
Rembrandt’s Paintbrush and mine may produce different results.
Or they must.

Absolutely beautiful work. No one believes this stuff, but that's OK for us!

Have you studied Jenkins work?

 

[tradersaavy]

Classic pattern.
The current pause with contracting overlapping bars is great.

 

[johnpinochet]

Quote from tradersaavy:

Classic pattern.
The current pause with contracting overlapping bars is great.

Would you elaborate? Are you seeing a bullish or bearish scenario?

 

[ammo]

triple tops don't hold, bullish

 

[johnpinochet]

Quote from ammo:

triple tops don't hold, bullish

That would be my best guess too. If that were a 5 minute bar chart I would be looking to buy.

 

[tradersaavy]

if the top breaks, bullish

 

[oraclewizard77]

How did you calculate the angle for some of those lines?

By the way, multiple time frames are sometimes useful, market has been range bound lately in currencies.

Quote from mu200411:

Trendlines like paintbrush, are user dependent.
Rembrandt’s Paintbrush and mine may produce different results.
Or they must.

 

[stalt]

I am very wary of the 12,750 range. I agree the DOW is ready to continue and in fact I think the close for the week actually sets up a good chance for the DOW to break through the 12750 range, but until that level breaks I will consider this rally suspect. If it does break that level and shows continued support at that level I will be a believer and in my view the rally will be confirmed. You can see that 12750 provided support in Nov., there was some consolidation at that level during the correction and then the last 2 rally attempts both stalled right at that level.

The start of the new support trendline should also be good for the long term as it is a bit shallower than the previous.

 

[taowave]

Quote from DrEvil:

My opinion is that trendlines are coincidental. What's really going on is price breaking through HORIZONTAL resistance, which price retraces to and tests before continuing up to tackle the next HORIZONTAL overhead reistance. Yes you can join the bottoms and draw some nice trend lines, but price does not respect a trendline, it merely respects support and resistance.

Well said DrEvil...Its a bit silly to think that price will follow/bounce off of an upward sloping trendilne or sell off of a downward sloping trendline.That doesnt mean that they cant be a major part of ones trading plan with proper risk/money management,but to think that they have "predictive" powers is hazardous to ones wealth