And there you have it! Ask 5 people and you have 5 different trend lines.
Could you share how it would look on your SPX Weekly, then?
Does trendline work?
- Thread starter GloriaBrown
- Start date
And there you have it! Ask 5 people and you have 5 different trend lines.
Could you share how it would look on your SPX Weekly, then?
I throw a couple sma's on the chart. 10 and 30 (no reason except Weinstein book)And there you have it! Ask 5 people and you have 5 different trend lines.
Could you share how it would look on your SPX Weekly, then?
watch the direction of these.
Price is trading below the 10 but it's not the end of the week yet.
Both 10 & 30 week sma are trending upwards.
I’m of the opinion that the exact placement of a trendline (best fit, wick or close) is less important than paying attention to what price is doing relative to trend/channel lines no matter how they’re drawn. Trend lines are great for general context.
No matter how the trend line is drawn in that chart, price was in a tight channel which means the first breakout is probably going to fail. Does that mean it was a bad/incorrect trendline when we reverse or is it giving more context?
I’ve been traveling the last few days but it looks like price just reached the first obvious target being the middle of that trading range (ioi).
Was it a sell signal? Yes, but if that arrow is your entry you’re also selling late on the first breakout of a tight bull channel where aggressive sell limit order traders already made a profit or are likely to take profit not too far below.
I just glanced at a daily chart to see two nice stacked red candles overshooting a channel line based on any preferred way to draw it…
Well, first of all, what appears on your chart seems more like a pitchfork rather than proper trendline. Clearly those "pivot lines" on your chart are shadowing the midline. However, that midline itself is drawn haphazardly (eg. the midpoint between P0 and P1).
That said, for a trendline to be valid, you need to connect the highest high to the next highest high (same for the lowest low). You'll need to connect at least 2 highs and lows, but more than 2 is preferable.
Here's a simple illustration of TA, nothing magical about it. You can use 2 trendlines, as shown here, as a channel to make a prediction.
MINE
YOURS
I'd post an trendline image or two (not Andrews Pitchfork) if the date axis was made visible to .. get it right.
I use Tom DeMark's Trendlines (with a slight twist - I base them on closing prices highest to lowest and vice versa), which are PA based no ambiguity and repeatable, along with his qualifiers.
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Well, first of all, what appears on your chart seems more like a pitchfork rather than proper trendline. Clearly those "pivot lines" on your chart are shadowing the midline. However, that midline itself is drawn haphazardly (eg. the midpoint between P0 and P1).
That said, for a trendline to be valid, you need to connect the highest high to the next highest high (same for the lowest low). You'll need to connect at least 2 highs and lows, but more than 2 is preferable.
Here's a simple illustration of TA, nothing magical about it. You can use 2 trendlines, as shown here, as a channel to make a prediction.
MINE
View attachment 321006
YOURS
Having looked over your chart again, maybe there is reason and rhyme after all. The bottom line is connecting P0 and P2 while extending that same line to P1 at the top. So, unlike what I said earlier, I guess everything does in fact check out.
Having looked over your chart again, maybe there is reason and rhyme after all. The bottom line is connecting P0 and P2 while extending that same line to P1 at the top. So, unlike what I said earlier, I guess everything does in fact check out.
You were right in noticing that mine are pitchforks rather than conventional trendlines.
I use them for number of other purposes together with other tools.
Thanks for posting your chart. Your channel is actually identical to another chart of mine which I’ve posted earlier in the thread:
https://www.elitetrader.com/et/thre...raders-post-your-charts-with-analysis.375661/
Yours is Arithmetic scale, mine is Log scale, but otherwise our channel is more less the same.
MINE:
YOURS:
