Do Trendlines work?

Quote from kjkent1:

The mathematical theorems that underlie all trendline formula, state as axiomatic, that none of the data points used as input for the trendline, can exist beyond the endpoints of the trendline.

Therefore, attempting to use a trendline to predict future direction of a security is impossible, because the science behind that trendline prohibits such predictions.

That was the long version of saying that I agree with you...trendlines are total BS.

LOL!
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Markets are high dimensional systems - that is, expressed by many variables - but still contain a great deal of structure. I believe that trends can help reducing the dimensionality of markets to make decisions. Ultimately, traders should look for models for which the equity line lies on a well identified tracjectory in their searching landscape. To make a story short trends can certainly be used with great result but with a non "Technical Analysis" flavor.
 
Quote from trackstar:

trendlines work extremely well and are the closet thing to the holy grail you will ever find.
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There is no such thing as holy grail but stuff that eventually works better than average.

Here is an example of what I do with trends:

For each parameter of my system:
- I do a trend segmentation
- I build a matrix for which each row is made of a trend
- I build the autocorrelation matrix
- I do a Principal Component Analysis on this matrix

This model looks at the temporal unfolding of a series of contiguous trends. I use this information to generate entries instead of projecting a trend which I agree is stupid.
 
I couldn't trade without trendlines....
it all depends where you draw them...most people like to connect tops/bottoms, which doesn't work in my book
 
Could anyone advice a good trade alert service on trend lines signals? I need to recieve notifications via e-mail each time the system recognize a trend and trading signal. Thanks!
 
Quote from Rico_Gonza:

Could anyone advice a good trade alert service on trend lines signals? I need to recieve notifications via e-mail each time the system recognize a trend and trading signal. Thanks!
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Check out www.amibroker.com. You can program it to send you Alerts whenever preset conditions are met.
 
Daytraders should just flip a coin. Heads, go long, tails, short it. If the position moves against you, close it. If the position is profitable, hold on tight. :D

All I can say is thank god for derivatives. I don't know how you daytraders put up with all the drama.
 
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