Taking a view on cash NDX (post #57), the gap down in NQ futures down to 1910 provided an opportunity to go long...
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Confirming Trendline breaks, chart patterns and other breakouts. 2 replies
Breakouts 3 replies
QuoteA trend cannot be derived from two points. Two consecutive days of cold weather don’t constitute global (or even local) cooling. A trend requires a statistically significant number of observations, and as such we will determine a minimum number of observations to give us statistical significance. Most traditional TA fails by this rule because it allows for the connection of two points into a line, called a trend line with the inference that the connection of two data points defines a support or resistance area.
Trendlines are significant in any timeframe.
3 touches of any trendline and subsequent breakout should see a retest of the breakout and then the start of another trend.Ignored
I offer the following by way of critique of commonly held TA assumptions that everybody takes for granted and not as a critique of your efforts. Please carry on.
Common TA assumptions should be scrutinized by anybody who wants to trade with the probabilities. Ask the following question, how can 2 or 3 data points determine a trend? What about all the other data points  are they less significant than the ones that are cherry picked for trend line drawing? How about another question, why must a trend line be a straight line?
There are lots of...Ignored
I'm not sure which part of the chart your screen shot is showing. Mine is USD/JPY Hourly chart. I think either upward or downward break may make an interesting move. Only the market knows though.Ignored
Hey Far East Man
The Usdjpy is now on the 60 min downtrend...
Are you from oz?Ignored
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