Trend lines sometimes work perfectly and PA obeys them to a few pips ( the same happens with fibs), but there are periods when they don't mean anything. The time period when TL's work is different. Sometimes it's a few hours, sometimes it's several days. I've had days when PA followed TL's when I was using other tools for trading and at the end of the day I regreted that I didn't use the TL's. On the next day I would try to use the TL's for trading and they would turn out unreliable. I don't know why they work sometimes, and sometimes don't. If anyone can explain that to me it would be great.
Some of you would say that TL's are unreliable when there are economic releases and news announcements, but I have seen TL's been obeyed during major news releases. The most striking was during a FOMC meeting minutes release when the knee jerk bounced right off the TL and continued in the trend direction. Why?
Some of you would say that TL's are unreliable when there are economic releases and news announcements, but I have seen TL's been obeyed during major news releases. The most striking was during a FOMC meeting minutes release when the knee jerk bounced right off the TL and continued in the trend direction. Why?