trend lines [part 1]

At this point, CW is the topic and its price is operating and, moreso, doing some testing of the market.

What CW is testing is the dynamic R of its price range. The R is the longterm R of CW place in the market.

CW has a performance that relates to the operation of the business and the business climate and the competition of that sector.

In the near past CW has gone through two changes in that climate, etc.

You can use trendlines to partially depict this. You aren't but you can easily. If you decide to, then you get the benefit of having a context for what you are doing now.

But there is still another effort you can make to also deepen the context of what you are doing.

These two bits of work apply to all stocks and making money.

I simply went back to a weekly chart and put in the trendlines and their counterparts for the channels that contain the price movement of CW. See the attached chart.

This just enables you to see where the charts you are looking at are located within the price history of CW.

having this scoped and bounded and annotated assures that these important lines are always going to be in the more detailed charts that you will be using for other purposes.

you are now looking at channels drawn from trendlines and you see several levels of these channela and their intial trendlines.

You cannot draw these as it turns out. That is no problem If you look at them closely and do a 100 such charts, you will know how to do them. I reviewed 84 of such last tuesday for about an hour. the person did them flawlessly to prep for a part of the meeting.

So you are seeing where CW is located in the infinite scheme of things. this will change your view o the markets and all stocks in the future. Big deal, maybe.
 

Attachments

Okay ET does display the chart.

Notice the left middle and right as divided up by the double and triple vertical lines.

Hitting home runs happens as a stock goes from one zone to another.

you can see how price channels are emerging and can be projected ahead into the future for price to then occupy. you are not projecting your trendlines into the future.

Notice to make money trendlines are not used.

Instead the left channel line (derived from the trendline) is used.

Now we are on a longterm left channel line for CW.

Cool.

now we can zoom in and see how to draw trendlines and channel lines for the purpose of makng money all the time.
 
Here is a chart that you can use instead of those posted so far in this thread.

If you do a 100 weekly for a 100 stocks, then you have some charts to work with to detail out.

I used the daily for most work to prepare this but then I wanted to finish it to correspond to the 60 minute charts you use.

The weekly got the "outside" taken care of and it also shows the traverses (smaller channels within) of the outer boundary.

You want to look at the channels within these channels andm further, on the 60 minute to the channel moves made on this chart. This is a good idea to do and do well.

But you have one problem in your lack of knowledge.

You do not know how things begin nor end.

For making money this is a good thing to know and a good thing to annotate.

Now that we have things scoped and bounded in terms of what is missing, all that has to be done is type up all the pages necessary to explain it to you for your reference.
 

Attachments

Okay this chart works too.

You can see that both charts are two screens wide.

that is a good starting point for making money.

I keep six screens filled by over lapping them in groups of 10 each. They are all background because I just use table of data that keeps rearranging itself so that the improtant stuff is always coming up to the top lines of the tables. This is a foreign concept at ET.

you need to consider learning how "end effects" occur because that is the time you get the points you need to project into the future. Price over time occupies these places as the future moves into the present.

The big confusion that is being presented to you centers around the five vertical lines I have annotated on the chart.


CW is testing the dynamic R as depicted byt the long term channel. This means that the Dominant (right to left) traverse of the long term channel is coming to an end.

It is shown by formations within the channels on all levels. there are five principle formations to consider and most of them appear at times when "end effects" are showing up.

You now know how to annote to know where "end effect" occur on all charts you may be examining. Now, you have a great advantage over other traders by knowing and dilligently doing this warm up sort of thing. Good for "potential" you.


Now , on this chart you see more detail. I added three levels of detail so it corresponds to where you are working.

We need to deal with the two things that are holding your progress up.

First is how to know where trendlines come from, and

The second, is to know when a new one is coming up.


Unfortunately, there is a context for these considerations and that is unfamiliar to you also.

I have put some letters and arrows on the chart so we can find where stuff of importance is located.

We are a very short time away from having a modus to be able to smoothly accomplish all that is necessary.

What happens is you get to know ahead of time when to buy and sell stuff without making any errors in doing it at just the right time.

To make it easier to deal with the " WHEN" All annotations that I did start at "WHEN". This is not what most books and workshops deal with so it may be worthwhile to print this set of pages.

Lets say you annotate 100 stocks with channels and you put all the lines on the chart so that the lines start "WHEN" the market says that it is time to start them.

On these charts I only added about 50 to 10 lines for several years. Many many more I left out. that is because I also want you to see the minimum effort required to just get in step with bringing another stock into view under your purview. It is a minimalist approach that provide what is know mathematically as "sufficiency".

Glance at the charts and make little check markes for each line that you understand.

you, at this time will begin to understand some of the "when".

The "WHERE" is harder and it is a sort of one of the miracles of making money fast.
 
This is the "WHERE" post.

All trendlines start within the space defined by the existing trend line.

Trendlines and their channels overlap.

The end effect that is the causal factor for a beginning is a concurrent failure of the existing operant system.

Certainly geometric formations depict these happenings.

So there is always a contained formation on a higher fractal that is there, formed and ending as well. All formations follow the P, V relationship (the effacacy of the P, V, resides here) and therefore, you have volume as a leading indicator of the event "WHEN".

the only way to see the exisotomng trend fail is to project it into the future, watch it come into the present and observe it fail at the time of failure.

The idea of drawing stuff after the fact as a trivial parctice is verified by the above.

Every annoation is drawn ahead of the time of its useful application.

I stopped omitting lines at point A. from A on I have fully annotated the fractal that is important to you. It is not the trading fractal for CW but that is not important compared to getting the annotating to begin to work.

Before the five vertical lines, you will see the failure of the prior trading (money making channel) channel. See X.

In the subsequent channel the next failure occurs. See Y.

This is the real beginning point of my conversation with you.
 
Channel failures alway occur before the price then crosses the trendline. It is the last time the most money in a trade may be made.

The expression "the trend is your friend" is powerful and the failure of trends always occur while price is advancing within the trend in a traverse that is in the direction of the trend.

Whew!!!!!!

All trades can relax in their slacks at all other times. this knowledge terminates all "sweating" while trading. Trading is a "no sweat" experience.

Right now the Dynamic long term R of CW is precluding any making money long term on CW using long trades. This reflects back down the line to intermediate term, short term and and dominant traverse of any long trend of any duration including a 30 second scalp. I am talking about C where you are on your charts.
 
At X the long trend ended and a short began. The traverse to X was a FTT. A Failure to Traverse (dominant traverse).

So the trend line of the short is underway at point X.

This is point 1 of a channel drawing.

Point 2 occurs when a low is reached and a retrace begins. the retrace ends at point 3 and the channel is projected.

As volume increases so does volatility and so the channel is widened accordingly.

Point Y occurs in this widened channel.

This is the beginning of a long and a trendline is going to go through this point.

It does.

Point 2 becomes defined.

Point 3 follows and the channel is in effect with a projection into the future.

You are going to have to struggle through about 100 charts to become fluent.

You have never done what comes next.

As volume increases, so does volatility and so does the width of the channel.

you will come to see slowly that the widest channel left channel line prevails as a limit of price movement some day in the future.

For CW it was demonstrated at the end of the chart.


One bar extablished the expansion and the last extreme rising bar came right to the projection of this left channel line. No further and no less.

the next dominant traverse towards this left channel line is likely to FAIL and when it does it is point Z the beginning of the next short trendline that you need to be drawing on Monday when it ocurs.

You are now up to date and ready to learn by doing.

What I posted did not teach you anything. It is just a multipage narrative of two charts that are an example of what no one else has told you or taught you. This will probably not teach you anything either.

10 or 20 charts out you will begin to make fewr mistakes.

40 charts out you will stop leaving the majority of the lines out.

70 charts out you will find out that you aren't picking stocks to make money with.


After 150 charts you will begin to figure out not to waste time on stocks that don't make a lot of money every day.

What number of charts out do you think you will get a charting system that lets you chart.

Chart ing is annotating charting is not watching charts.

Here is a list of 84 good ones to begin with.
 

Attachments

Quote from Grob109:


What CW is testing is the dynamic R of its price range. The R is the longterm R of CW place in the market.
More...

What is R?

What resolutions do you use and which ones do you like to see line up when taking a position?
 
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