Do Trendlines work?
- Thread starter duard
- Start date
Yes the rules are very fuzzy.
My brother has made money just about trading everyday that he has traded for the last 90 days or so of trading.
He uses trendlines and his idea of cycles.
There are weeks at a time where he does not put on a trade.
There must be direction and volume. Then he counts moves down and looks to sell moves up into downtrendlines.
That is a lot of filtering.
That I think is what it takes to be profitable using trendlines or any other charting method.
My brother has made money just about trading everyday that he has traded for the last 90 days or so of trading.
He uses trendlines and his idea of cycles.
There are weeks at a time where he does not put on a trade.
There must be direction and volume. Then he counts moves down and looks to sell moves up into downtrendlines.
That is a lot of filtering.
That I think is what it takes to be profitable using trendlines or any other charting method.
dude, imho you are soooooo wasting your time with this 'research'.
i use trendline to invalidate trades. in certain price structures, if the price is about to encounter a trendline, i know with very high probability that it will not cross the trendline.
it has helped me, for example, identify literally thousands of false breakout or breakdowns, and hence not take a position, and thus increase my win:loss ratio galore.
or it has helped me, literally thousands of times, to know with very high probability that price will not proceed further, and then i exit the position i am in, thus increasing my risk:reward ratio (i get more money from a trade).
by increasing my win:loss ratio, and my risk:reward ratio, i increase my income from the market.
end of story. trendlines are helpful to me.
now the only research you should do is try to prove if i am lying or not, that's it.
i use trendline to invalidate trades. in certain price structures, if the price is about to encounter a trendline, i know with very high probability that it will not cross the trendline.
it has helped me, for example, identify literally thousands of false breakout or breakdowns, and hence not take a position, and thus increase my win:loss ratio galore.
or it has helped me, literally thousands of times, to know with very high probability that price will not proceed further, and then i exit the position i am in, thus increasing my risk:reward ratio (i get more money from a trade).
by increasing my win:loss ratio, and my risk:reward ratio, i increase my income from the market.
end of story. trendlines are helpful to me.
now the only research you should do is try to prove if i am lying or not, that's it.
There is no fuzziness in the algorithm to automate trend line determination. I have done it. Painfully. And tested it. It doesn't work. Trendlines all by themselves work only in hindsight. When they work, you make money. When they don't, you give it all back.
Yes, lots.
A few days ago I made up an outline of a piece I thought I would write (a thread started on "books") along the lines of the 80 page piece posted a week or so ago in this thread.
The hans comment on P crossed with V was a spark too. It leads to the discussion of trnedlines in about 3 or 4 steps.
BUT, we get to start off one more time with the reiehaxm personal bullshit and another reply of ancillary negative considerations by jem.
The title of the piece I was considering for this thread was: Why Trendlines Don't Work.. I thought maybe if a person was presented with the scope and bounds of how people continually screw this deep foundational stuff up, then they could reorient to the major opportunity staring them in the face.
Maestro, you punched in a few one lines today giving us all a series of instructions on page 50 or so of a thread. Try this: get the first idea related to trendlines: they are used in the future. So if you post a chart at least leave half of it blank and at least show on the chart the three related variables.
There are two groups here A and B. In A their are people who use trendlines to make money. All of these people, I would say, have blank space to one side of their charts.
I set WTLDW up in five parts each having 2 to 4 sections.
As I suggested in my P cross V comment, ET has a given nature, operating ways and a population that precludes really getting the job done. You'll notice the follow on to my comment shows just how difficult it is to make any, even, basic point and have it result in a spark being created.
Someone is making one hell of a lot of money. The people here, apparently, in their personal lives, never have occasion to meet any of these people. This subset can reason and think "marketeese". Maestro, you may be getting your first wakeup call.
I'm hoping someone picks up on how P and V derivatives lead to the consideration of trendlines (trend channels where the left line is where money is made).
Jack. I wasted precious moments of my rapidly waning life looking for the "the 80 page piece posted a week or so ago in this thread". Where did you stealth it? One of us is senile. Maybe it is me, but I don't think so. Mike.
Yes I use them too.
They are just as good as angled ones.
Because they display the same thing, support and resistance areas.
Today, on YM 10350 could have been used as an intraday horizontal line.
I'm not looking at a chart as I type this but I remember 10350 being a sticking point today.
Go look at a 1m chart of YM and I'll be you'll see a clear horzontal line.
i can't remember the specific contributor but I do remember commenting one morning around coffee time. Peddling back mentally I would guess around the 28th. Good luck.
Ohh it involved tweeking some periodic line drawing stuff with an oscillator of some sort. My specific recall is that I thought the presentation format was terrific and I could generate about 50 sych topical things as a quick fix. the graphics in it trigger me to add a video capability to replace graphics and just take several minute videos before during and after trendline end effects. that let to outlining WTLDW.
Maestro' problems are in Part B sections I and II for example.
Here's a thought for you. What if I upped the ante in ET and starting posting on an intermediate or expert level instead of the advanced beginner stuff which you paste in your journal and keep happy with.
If I got down to graphic details on how the making money works in markets, for sure even the most average programmers could design and OPERATE software that would shake up the markets for ever after.