"how long" until ES or NQ (emini) trendline becomes"valid"??..meaning from tops or bottoms for how long?...5 minutes, 1 hour, 2hours?...please chime in with your expertise....thanks....
"how long" until emini daytrade trendline becomes"valid"??
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as long as you can link 2 highs or 2 lows together using a line, you have a valid trendline.
thanks...is not there greater "validity" if the trendlines are say, 30 minutes apart rather than 2 minutes?...correct?...
theres only one way to find out and its to do the statistical studies yourself. I suggest you take stats on the following
- how much time between the 1st and 2nd hi/lo that you link.
-how many high and lows forms your trendline (to verify if more highs and lows means a stronger trendline''
the total ''time'' of the trendline. exemple if your trendline starts at the 10:00 am high and ends at 13:00pm, you have a 3 hours long trendline.
-the slope of the trendline
do that and youll have a definite answer to whats good and whats not.
i assume that you want to play trendline breaks as entries. do the work and youll know if a 4 point trendline that spans over 4 hours and is sloped downwards is statistically better than a 2 points trendline that spans over 1 hours and is horizontal.
- how much time between the 1st and 2nd hi/lo that you link.
-how many high and lows forms your trendline (to verify if more highs and lows means a stronger trendline''
the total ''time'' of the trendline. exemple if your trendline starts at the 10:00 am high and ends at 13:00pm, you have a 3 hours long trendline.
-the slope of the trendline
do that and youll have a definite answer to whats good and whats not.
i assume that you want to play trendline breaks as entries. do the work and youll know if a 4 point trendline that spans over 4 hours and is sloped downwards is statistically better than a 2 points trendline that spans over 1 hours and is horizontal.
strong words
There is a very reasonable priced book called stikky stock charts that is supposed to be the best book on drawing trendlines.
http://www.amazon.com/Stikky-Stock-Charts-Professionals-Smart/dp/1932974008
If trendlines don't work why did Richard Wyckoff use them? His works makes modern day TA look like a joke. That's a hint increase on whom you should focus on studying.
http://www.amazon.com/Stikky-Stock-Charts-Professionals-Smart/dp/1932974008
If trendlines don't work why did Richard Wyckoff use them? His works makes modern day TA look like a joke. That's a hint increase on whom you should focus on studying.