[quote=simpleguy;4126499]
Nice post simpleguy and thanks for the valuable insights.
I'm getting hung up on how to tell if a a S/R line will be a breakthrough or just a bounce. Is it as simple as the first and second tests will likely bounce but a third test (and beyond) has a greater likelhood for a breakthrough. I'm following the old statement that the more a S/R line is tested the greater likelihood it will be broken. I'm just trying to translate that into number of tests if possible.
I am setting up my trend lines by requiring that a certain number of bars must be on the left and right side of each high or low for a trendline to be drawn. So a TL with a "20" means that 20 bars have to separate the two highs or lows with no highs or lows in between. If you do this for a series of TLs (let's say at increments of 10) then you'll occasionally have the "10" TL on almost the same line as the "20" and "50" (or even "100") TLs let's say. That will be a confluence of TLs and be stronger in my opinion that just one TL. I am just tinkering with this right now but I like the results so far and it's less subjective.
QuoteDisliked1. Here is how I do it on the 5 minute TF. I go to the 15 minute and zoom out. Look to the left and find the highest and lowest point. then I draw the line to the next swing high/low that will keep everything either below or under it. then I go down to the 5 minute TF. Here I will draw a secondary line for the shorter term trends.........
Nice post simpleguy and thanks for the valuable insights.
I'm getting hung up on how to tell if a a S/R line will be a breakthrough or just a bounce. Is it as simple as the first and second tests will likely bounce but a third test (and beyond) has a greater likelhood for a breakthrough. I'm following the old statement that the more a S/R line is tested the greater likelihood it will be broken. I'm just trying to translate that into number of tests if possible.
I am setting up my trend lines by requiring that a certain number of bars must be on the left and right side of each high or low for a trendline to be drawn. So a TL with a "20" means that 20 bars have to separate the two highs or lows with no highs or lows in between. If you do this for a series of TLs (let's say at increments of 10) then you'll occasionally have the "10" TL on almost the same line as the "20" and "50" (or even "100") TLs let's say. That will be a confluence of TLs and be stronger in my opinion that just one TL. I am just tinkering with this right now but I like the results so far and it's less subjective.