Ghost of If You Can Draw A Straight Line

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like niko, i see these trend channels all the time nowadays.
 

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Roffe said:
like niko, i see these trend channels all the time nowadays.
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But you're not allowing it to do its job. Your upper line should begin with the first swing high after the beginning swing low. Yes, this will cut through the second and third swing highs, but that's the point. It's telling you that those highs are "overbought" and that those levels can't be sustained as long as the swing lows remain where they are. So, price reverts to the mean (which is also drawn too high).
 
dbphoenix said:
Yes, this will cut through the second and third swing highs, but that's the point. It's telling you that those highs are "overbought" and that those levels can't be sustained as long as the swing lows remain where they are.
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and here i thought it looked so pretty and orderly. ;) but yeah, you're right. forgot about/ignored the whole overbought feature of it. thanks.
 
Roffe said:
like niko, i see these trend channels all the time nowadays.
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Just to clarify, I did not see "that channel" :) . Roff, give a good read to the AMT post db made a couple of days ago, those will help you tracing the channels properly. If you are in a downtrend TC you have to start with the Down TL. It seems like you are using the lows as reference points.

Great that you are posting BTW.
 
I've been getting questions about volume via PM and otherwise and this week provides a good example of why I don't plot it anymore.

Does one really need to see the volume that accompanies buyers slamming on the brakes Monday morning to see that they are supporting price at that level? Does one really need to see the volume yesterday to recognize a climactic selloff which happens to occur at the lower limit of the trend channel? If so, then by all means plot it. But if one understands that volume is important only at those levels and points where it makes a difference, and the price behavior itself at the time will tell you what to do, the volume plot becomes irrelevant.
 
niko said:
Just to clarify, I did not see "that channel" :) . Roff, give a good read to the AMT post db made a couple of days ago, those will help you tracing the channels properly. If you are in a downtrend TC you have to start with the Down TL. It seems like you are using the lows as reference points.

Great that you are posting BTW.
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What is improper in his channels? Price follows them.
 
I see we tested 3500 a couple of hours ago. This is a plus. Whether or not one goes long here is of course up to the individual trader.
 
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