Trading the lines my way - technical analysis

Hi Guys,

I would like to start a new thread, because on FF forums I didn't yet find much knowledge about it.
I believe that this can become a true edge or at least trading advises for many traders over here.
So before I start sharing my knowledge let me first make an important statement:
"What I will be posting about is only my beliefs and opinions, my way of trading, and of course I could be wrong, so please trade Yourself carefully, and do not use those methods for trading without Your strong knowledge and Your strong conviction, especially when trading real money"

Generally this thread will be about trading the LINES.
I will try to give some examples first, because I think that often one image is worth more than thousand words.
I do not want to be " an expert of history charts" - I will try to do some forecasts on real charts - we'll see If what I am writing about can be used for succesful trading.

Ok, let's start from some forecast attempt and first line:

EURUSD, W1:

Let's focus on the Red line (Green one is quite obvious, LL -> HL means a normal rising trandline).
Red line is basicly drawn on following conditions:
- its start is on local high extremum in a recent history (let's call it fractal),
- its slope is bigger than the slope of a green trendline.

As You probably observed it is not very strict in its assumptions, so the line is impossible to be a strict border for a strict trading (for example to put a long TP over there, or to put a sell order).
Especially traders at H1, m15 (...) charts and of high leverages might be confused now.
But I'll try to explain why I do not treat this line as worthless. More, I will probably put my real trades (short orders) around this line.
And this is because I generally treat such lines as much harder to break effectively than trendlines.
Don't get me wrong, I am not sure if price will hit this line or not. I am just saying that if price will get to the area next to this line, I will start my positions down.

Please, ask questions if something is hard to understand and sorry for my poor English.
Best Regards to all.

Add these to your weekly chart.Watch what he is really saying and watch it a few time's. Pick a trigger say where the ema(10) is above ema(10). On a good uptrend on can get in many times.

Hi Mac712, thank You for Your voice in discussion.
This however is not really about the subject of the thread. I wouldn't like to discourage You of trading the tips of this gentleman, however I have seen dozens of movies with such great descriptions of what has already happened on the market.
His is talking about the Moving Averages and image of the past he gets with them.
This thread is about the LINES, and their specific usage. I wouldn't like to put much more to this thread to not to make it about everything (thus about nothing).

Ok, so getting back to the lines;
I started the thread with two types of lines.
First is well known trendline (green on chart).
LL -> HL is a trendline up, and HH -> LH is a trendline down.
Trend line is basically often well seen on charts. Many traders use them in their transactions trading with the trend when the line is formed.
In the past I was trying to do the same, but I found it really difficult. I then realized what was one of the biggest mistake.
It was the fact that trendline is drawn based on two consecutive fractals (local extremes). To be sure that the particular candlestic will be a fractal we need to have few (e.g. 3 or 5 - depends on the fractal type) candlesticks on the right side of the extreme to confirm it. And those few candlesticks of confirmation was making the biggest part of the move "based" on the trendline. I wrote "based", because I see it opposite. For me it's not the move based on trendline. Its trendline based on the move.
Great amount of the moves that we can draw trendline at, are already done, or at least are forming the next step of the movement.

Check the "violet" colour scopes. It shows how much move is left after confirmation (only 3 bars of confirmation). Even if it is positive, it is not much in relation to the whole move. The last one is still on, so it might change a bit.