Do Trendlines work?
- Thread starter duard
- Start date
The previous discussion focuses on the 'D' portion of the M-A-D-A paradigm. Unless and until the trader has mastered both 'M' and the first 'A' of the process, focusing on any portion beyond these two functions serves no purpose. Doing so, in essence, represents the same logical flaw as attempting to put a roof on top of a house, prior to, actually building a basement.
Your answer provides but one example of an acronym used to describe a certain event with respect to Price and Volume. However, your answer does not provide insight into what causes the FTT in the first place. In other words, how does one learn to anticipate continuation or change. Build a rock-solid foundation with respect to the 'M' and 'A' portions of the paradigm, and most likely, you'll not need to 'guess' at these answers.
- Spydertrader
It's easiest to see with the red graph. For a given x increment, say 1 unit, the y increment is progressively larger. This relation should be evident when you process your monthly Volume/Volatility data. Of course when you don't have any Volume data, like with FOREX, you have to be more creative, which, like many things, Jack has already (been there and) done (that).
The great Einstein said that when your theory is correct, you should be able to predict stuff, which he did in abundance (like black holes). The markets are not basic science but, IMO, this FOREX stuff (the concepts - not the anticipatory minute by minute workings) comes very close to a prediction and that is très cool.
Which is to say Spyder, that I'm almost there but not quite. I still prefer the idea of a volume proxy but if one can realistically extend one's observable then one should. And if you say'... any market, any ....' I'll have to get in touch with ....
lj
how does one learn to anticipate continuation or change. Build a rock-solid foundation with respect to the 'M' and 'A' portions of the paradigm, and most likely, you'll not need to 'guess' at these answers.
- Spydertrader [/B][/QUOTE]#
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What's that supposed to look like in real
time trading??
Sorry - the whole discussion is a bit too academic for me.
Thanks for taking your time - same to CD -
Ch.
- Spydertrader [/B][/QUOTE]#
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What's that supposed to look like in real
time trading??
Sorry - the whole discussion is a bit too academic for me.
Thanks for taking your time - same to CD -
Ch.
The market moves in sequences from one state to another (continuation to change). These sequences resemble dominos falling in a line. When the dominos stop falling in one direction and start falling in another direction, the market has signaled change. For example, Pennant Breakouts develop on increasing Volume. Price leaves the Pennant formation - and remains out of the pennant formation. These are the dominos one expects to 'see' in real time. When the dominos do not fall in the same way, but the market instead provides a different set of dominos, one then expects to 'see' change materialize. Now, all one needs to know is what context exists in real time to then know what must come next. This pattern of 'falling dominos' repeats over and over again all day every day in every market on every time frame. Pennants represent but one example. Many others exist.
- Spydertrader
If this line breaks and under the low of the day, good example of trendline breaking
yep, closer look
