Well stated but your comment also contains the vary reason most traders will never understand how Trend Trading or Trendline Trading creates profit, that statement is, "tinker with it and within a two years you should be able to come up with your own trendline trading method". That denotes a person would have to have patience and focus to create a profitable system. Most traders have no patience. That is why they migrate to books to try to figure out the Market instead of doing the problem solving on their own.
Trader Vic's Trendline
- Thread starter KevinK
- Start date
Well stated but your comment also contains the vary reason most traders will never understand how Trend Trading or Trendline Trading creates profit, that statement is, "tinker with it and within a two years you should be able to come up with your own trendline trading method". That denotes a person would have to have patience and focus to create a profitable system. Most traders have no patience. That is why they migrate to books to try to figure out the Market instead of doing the problem solving on their own.
Oh you did! Can you teach me?!
Yes, I believe it is.
In a trading day, I usually have a 5 day chart of dia spy and qqqq running, among other things, on which I'll mentally draw trendlines at times. One of the items I've gotten used to for guidance and to keep track of where we've been during the week. Don't know if that answers one of the questions above on how it might be useful in a short time frame.
Geo.
I'm wrong on my post above. I didn't read the chart correctly.
Agpilot has it right.
Geo.
You appear to have a BO from a base. Price makes higher highs, halting at 13.5.
Price then retraces and finds support at what appears to be the top of the base. In any case, it continues its advance, makes a higher high, and you can draw a new trendline.
Price then consolidates for a couple of weeks, then makes a higher high, so you can draw a new trendline.
Price then breaks this trendline, a change in trend. It finds support at the last consolidation, but can't make a higher high. It then makes a lower low, a reversal in trend.
Price then finds support at 13.5 (the old resistance), and makes another attempt, breaking the downtrendline, another change in trend. However, it can't make a higher high, nor does it make a lower low, so the "change" in trend is trendlessness until one of these levels is broken.
Price then retraces and finds support at what appears to be the top of the base. In any case, it continues its advance, makes a higher high, and you can draw a new trendline.
Price then consolidates for a couple of weeks, then makes a higher high, so you can draw a new trendline.
Price then breaks this trendline, a change in trend. It finds support at the last consolidation, but can't make a higher high. It then makes a lower low, a reversal in trend.
Price then finds support at 13.5 (the old resistance), and makes another attempt, breaking the downtrendline, another change in trend. However, it can't make a higher high, nor does it make a lower low, so the "change" in trend is trendlessness until one of these levels is broken.