Does trendline work?

SunTrader said:
Look at candle bodies on each swing highs and how TL skims right across them. And ignore the fact wicks poke through and you'll see ... a ha.
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Not sure what I'm supposed to see. Both lines show a down trend.
I'm not a day trader, but what significance does that particular trend line have, being that it's on a one minute chart? The red is the line you would get if you used a line chart that plotted only the close. The yellow shows the actual highs that were reached.

The question should be how do you use a trendline rather than does it work.

What's with the blue dots?
 
deaddog said:
Not sure what I'm supposed to see. Both lines show a down trend.
I'm not a day trader, but what significance does that particular trend line have, being that it's on a one minute chart? The red is the line you would get if you used a line chart that plotted only the close. The yellow shows the actual highs that were reached.

The question should be how do you use a trendline rather than does it work.

What's with the blue dots?
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:)

I use trendline lines how they work. IOW I use closing prices, period. And ... over any trading period. Wicks are unimportant, a few traders - relatively speaking - who got caught before price reversed.

Blue dots (and red ones) are reversal bars, LL's but closed higher in top 75% of bar range, vis versa for red.
 
SunTrader said:
:)

I use trendline lines how they work. IOW I use closing prices, period. And ... over any trading period. Wicks are unimportant, a few traders - relatively speaking - who got caught before price reversed.
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Regardless of where you draw your line, the question remains how do you use them in your trading?
I use them as an exit signal.
Blue dots (and red ones) are reversal bars, LL's but closed higher in top 75% of bar range, vis versa for red.
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Thanks for the explanation.
 
deaddog said:
Regardless of where you draw your line, the question remains how do you use them in your trading?
I use them as an exit signal.

Thanks for the explanation.
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As with most of how I trade I use Tom DeMark techniques, so in the case of trendlines he has 3 rules for qualifying TL, and just as importantly disqualifying them, to fade them instead.

I posted a pdf I came across a while ago in another topic laying it all out. But I have all 3 of his books so that is where I turn to.
 
PPC said:
Personally, I think horizonal lines are better than sloping lines on lower time frames, nevertheless, sloping trendlines can be still useful on higher timeframes when they’re obvious and other traders will be paying attention to them.
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Agree about "horizontal lines vs. diagonal".. the diagonal ones don't hold as often as a trader would like. However, they DO hold sometimes... and sometimes for significant moves... so players should be aware of them and be ready to play them when it "looks like they held".
 
PPC said:
Hi @Onra, if you want to use trendline to identify possible trendline breakout areas, then the blue trendline you drew should be drawn as an outer trendline connecting minimum of three major swing points.

Also, a ‘retest’ can occur only after the initial breakout, and there was no breakout when the chart was posted, therefore there was no ‘retest”.

See the chart below with explanations, I hope it helps. :)

View attachment 322452
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Agree... Red Line is correct

"Upper channel line doesn't appear to be drawn correctly"... actually, it's close. The channel is the blue lines. The channel would be just about spot-on if the upper line connected the actual wick highs and the lower line connected the actual wick lows. IOW, the channel was the right idea but was drawn "too narrowly."
 
From NQ 9/11. Trendline appears to be acting as support.... playable with usual (tight) stop.

tl.PNG
 
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