You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Spydertrader's Jack Hershey Equities Journal II
- Thread starter Spydertrader
- Start date
- Status
- Not open for further replies.
Yes SpiderT, The chart TODAY is a perfect channel, what I meant is that YESTERDAY you couldn't use it to "predict" a top.
Today you can draw a line from point 1 to yesterday top, Yesterday you couldn't, if not after the fact, or am I missing something?
See attachment
EDIT: sorry I meant point 2
Today you can draw a line from point 1 to yesterday top, Yesterday you couldn't, if not after the fact, or am I missing something?
See attachment
EDIT: sorry I meant point 2
Attachments
Quote from mark1:
Yes SpiderT, The chart TODAY is a perfect channel, what I meant is that YESTERDAY you couldn't use it to "predict" a top.
Today you can draw a line from point 1 to yesterday top, Yesterday you couldn't, if not after the fact, or am I missing something?
Take another look at the attached chart. I drew the lines before yesterday's open. I saved the chart this morning and added the numbers before posting. Prior to yesterday's open, price held in the middle of the channel. At time of signal generation, price placed itself near the top of the channel. When I draw trendlines, I construct them in such a way using 'rays' - the channel lines continue to extend to the right and automatically continue onward in length. Using the points (1, 2 & 3) illustrated on the chart, one could have easily drawn in a trendline between points one and three, then created a parallel line tangential to point two in order to create the channel.
Hopefully, that explanation provides some clarity.
- Spydertrader
<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=924338>
Quote from martys:
Damn, as soon as you guys put up these posts, NTRI drops like a rock. I sold half @ 43.80 because I over-position myself. Parrallel lines are great but all support and resistance are support and resistance until broken.
Think of Channel Lines (or Linear Regression Channels or their brethren) as dynamic pivot points or dynamic support / resistance areas. Whereas normal S/R zones remain static, the areas of S/R along trendlines change over time. I often use, pivots, S/R and trendlines within the same chart.
- Spydertrader
- Status
- Not open for further replies.