Do Trendlines work?

Quote from ArchAngel:

Do trendlines work?

Like every TA tool - they'll work (seemingly scary) great, right up until they fail miserably.
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i don't understand. they work great for some time, and then one sunny day they suddenly in a flash stop working and never ever work again? like my $100 digicam? :D

or is it gradual, day by day they work less and less? like my friend's relationship? :D

or, like any other truth in nature, they simply have probability.
if they have high probability then it's a good tool.
also don't forget that a trendline by its nature gets tested a few times and then breaks (rather then 'stops working').
 
Quote from ArchAngel: & 50cent

Do trendlines work?

Like every TA tool - they'll work (seemingly scary) great, right up until they fail miserably.

It also depends huge on what trendlines (or other TAs) you're looking at. I've seen a lot of trendlines drawn manually on charts by people that don't do a good job of properly representing the trend - so they're looking at the wrong info. Same with other TA tools. I see people trying to use goofy unconventional time periods for moving averages, etc. thinking it'll give them some kind of edge. But they end up being the only person looking at that particular thing.

Except for perhaps some unique support/resistance analytics or price/volume dynamic fractalizations, fundamentally the normal TA tools are about looking at the same thing that the mob is looking at and acting enough in concert with the overall group reaction to yank some cash out of the market.
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Yes some use trendlines like a damaged short yardstick,
the consistancy may help some, if used consistantly;
but to make a long story short its still a crooked yardstick.

:cool:


Those who dont like moving averages [ma=a form of trendline];
actually have a partial point of not liking a ma in a sideways trend, like QQQQ & tek related are lately.[from friday]

However still like a ma occasionaly;
besides QQQQ & tek related are also in mostly medium & long term polar bear trends as confirmed by accurate trendlines:D
 
Quote from 50 cent:

why run complicated scenarios. how about this, look how basic and how potent trendlines can be.
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Very true, but if you want to know WHEN reversal ( bounce ) will most likely happen, you must employ a bit more complex methods.
 
Trend lines is a very good tool to explain WHAT HAS HAPPENED and it is a very poor tool to predict WHAT IS GOING TO HAPPEN No matter how much you hate this statement it will always remain true. :cool: :)
 
Personally I think that we have had enough of Discussions regarding as to whether Trendlines work or not. (As of now, its 25 Pages).

Instead, could we start discussing as to the correct and in-correct ways of drawing Trendlines. Of course, non - believers can move onto new threads :) .

Cheers
 
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