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3 NEWBIE questions

  • #1
  • First Post: Oct 26, 2006 8:39pm Oct 26, 2006 8:39pm
Hey, I've been reading everyone's posts and all and I had three questions, two of which are kind of answered, but please leave your feedbacks. Awesome

1) In which region can I choose the highest high/lowest low?
A: Apparently the vertical can go beyond the first point (right point) but not the left point

2) Why draw both supply and demand lines?
A: To see which side might break and trade from there. If both break, close the first position and go with the second because forex is very dynamic and you want to be following the most recent data.

3) What if my supply and demand lines look weird - that is at awkward angles?
A: Apparently, demand lines(uptrend)'s left point _has_ to be below the right point. For supply lines, the left point has to be greater than the right point. This is to ensure the proper slopes.

== Real Question ==
4) Can the trendlines penetrate some candle bodies?

I've seen people post "no" but I've also seen pictures where they do go through bodies...

What're your thoughts on these questions?!?

I just started trading so feedback is much appreciated. BTW, nice to meet y'all.

-Evan
  • #2
  • Oct 26, 2006 9:03pm Oct 26, 2006 9:03pm
regarding Support and Resistance Lines.... They can go up or down or toward eachother, it really doesn't matter, All you are trying to do are finding points where the price struggles to go above or below.

Regarding question 4.... Generally speaking no but there are a few exceptions.
If the candle that has gone outside of the trendline is a news candle and its only the wick then generally you can discount it. However you need to look at the overall picture and see whether or not it has changed the general channel or if after that particular spike the price action settled back into the range. If t is the latter then you can go through the wick.

I'll tell you what if you post charts then I'll make comments on your lines. Don't take everyting I say as gospel but its a rough idea.
  • #3
  • Oct 26, 2006 9:23pm Oct 26, 2006 9:23pm
Quoting Skyhr
Hey, I've been reading everyone's posts and all and I had three questions, two of which are kind of answered, but please leave your feedbacks. Awesome

1) In which region can I choose the highest high/lowest low?
A: Apparently the vertical can go beyond the first point (right point) but not the left point

2) Why draw both supply and demand lines?
A: To see which side might break and trade from there. If both break, close the first position and go with the second because forex is very dynamic and you want to be following the most recent data.

3) What if my supply and demand lines look weird - that is at awkward angles?
A: Apparently, demand lines(uptrend)'s left point _has_ to be below the right point. For supply lines, the left point has to be greater than the right point. This is to ensure the proper slopes.

== Real Question ==
4) Can the trendlines penetrate some candle bodies?

I've seen people post "no" but I've also seen pictures where they do go through bodies...

What're your thoughts on these questions?!?

I just started trading so feedback is much appreciated. BTW, nice to meet y'all.

-Evan
use an EA to solve most of ur problems and hassles.. try Mouteki EA..
BECAUSE I CAN !
  • #4
  • Oct 27, 2006 6:06am Oct 27, 2006 6:06am
Quoting Skyhr
3) What if my supply and demand lines look weird - that is at awkward angles?
I read that Mouteki loves a 45 degree angle, so I look for trend lines near that... If it's too sharp, you probably wont get an entry anyway. Too flat kinda makes the trade a break of a resistance or support line, rather than a "trend" line.
  • #5
  • Oct 27, 2006 6:10am Oct 27, 2006 6:10am
I have newbie question #5:

5) When drawing the DeMark trend line, can trend line candles share spacer candles?... Or, does each one have to have two seperate candles to the left and right?

Thanks...
  • #6
  • Oct 27, 2006 11:53am Oct 27, 2006 11:53am
Quoting YasirYar
use an EA to solve most of ur problems and hassles.. try Mouteki EA..
Sorry but I use NinjaTrader so I can't use EAs from what you provide here. It's a good program and I'd rather draw the thing since I'm combining it with a momentum trend trade, and then use the Mouteki to see whether the trend is reversing to the rice projection since both methods use the 4h charts.
  • #7
  • Oct 28, 2006 11:49am Oct 28, 2006 11:49am
I'm almost positive that they can share..atleast that's what i've come to believe, and if you think about it, it seems logical. and although im still a newbie myself, my supply/demand lines have proved to be accurate in testing so far...

but if i'm wrong..i welcome all criticism/correction.


Quoting Dpip
I have newbie question #5:

5) When drawing the DeMark trend line, can trend line candles share spacer candles?... Or, does each one have to have two seperate candles to the left and right?

Thanks...
- nick andre -
  • #8
  • Oct 28, 2006 11:43pm Oct 28, 2006 11:43pm
Quoting Skyhr
Sorry but I use NinjaTrader so I can't use EAs from what you provide here. It's a good program and I'd rather draw the thing since I'm combining it with a momentum trend trade, and then use the Mouteki to see whether the trend is reversing to the rice projection since both methods use the 4h charts.
switch to mt4 then itll make ur life easier
BECAUSE I CAN !
  • #9
  • Oct 31, 2006 4:59am Oct 31, 2006 4:59am
Quoting Nick_likes_pips
I'm almost positive that they can share..atleast that's what i've come to believe, and if you think about it, it seems logical. and although im still a newbie myself, my supply/demand lines have proved to be accurate in testing so far...

but if i'm wrong..i welcome all criticism/correction.
I was thinking the other way... But, you've read DeMark's stuff, so I'll go with you.

For my own logic, I just don't like the two trend line candles that close. Anyway, it would probably be a real small trade with only 2 or 3 candles separating the trend candles... I guess if the day chart & other filters/indicators give you a good entry, then it sounds like a good trade.
  • #10
  • Oct 31, 2006 10:54pm Oct 31, 2006 10:54pm
correction, i've LEAFED THROUGH DeMark's stuff, im working on reading the whole thing. so lets not go with me lol. i think it would qualify as a valid tdtl, but like you said, it would probably be a very small trade.



Quoting Dpip
I was thinking the other way... But, you've read DeMark's stuff, so I'll go with you.

For my own logic, I just don't like the two trend line candles that close. Anyway, it would probably be a real small trade with only 2 or 3 candles separating the trend candles... I guess if the day chart & other filters/indicators give you a good entry, then it sounds like a good trade.
- nick andre -
  • #11
  • Feb 28, 2015 3:17am Feb 28, 2015 3:17am
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  • #12
  • Feb 28, 2015 3:21am Feb 28, 2015 3:21am
testing screen shot posting
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  • #13
  • Feb 28, 2015 3:23am Feb 28, 2015 3:23am
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  • #14
  • Aug 31, 2020 6:08am Aug 31, 2020 6:08am
Very informative post. It will help all the newbies who are in dilemma to take the correct decisions. Thank you very much for this post.
  • #15
  • Sep 2, 2020 3:22pm Sep 2, 2020 3:22pm
Thank you for your informative writing. It will help all the new traders like me.
  • #16
  • Last Post: Sep 3, 2020 3:53am Sep 3, 2020 3:53am
Quoting OwenBavin
Very informative post. It will help all the newbies who are in dilemma to take the correct decisions. Thank you very much for this post.
its a good post or bad post , its not a deal , the main deal is what actually you got from this message ? i think the right point we the traders have to focus on instead of appreciation. thanks
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