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Trend Lines Don't Work

  • #161
  • Apr 10, 2012 7:04am Apr 10, 2012 7:04am
I agree with this post and this is why:

Trendlines itself don't work. You can't trade from subjective lines because everybody draws them differently and that reason alone should be enough to realise that if it is still profitable it must be something else that trendlines are forcing you to do.

This something else is that with using trendlines your forcing yourself to always trade with the trend (you must have 3 bottoms or tops to draw a trendline) + a retracement (to get at the trendline the price must retrace some) in this trend. This it what make trendlines 'work' in my opinion and why in reality they don't work at all but are still usefull (your getting me ).

I hope people still visit this post

Regards,

Neal
  • #162
  • Feb 2, 2023 11:49pm Feb 2, 2023 11:49pm
Quoting newyear498
{quote} Cindy I read your post and I feel you present the same points as me.. I am happy to see you share similar views.. I do feel that you can know where the 'big money' is buying and selling.. ofcourse you can only know this after the fact.. but you can no ahead of time where they will place there order if they decide to buy or sell.. but another topic completely Otherwise I felt you share a similar kind of thinking if I interpreted correctly thank you for you insights.. its nice to see a post different from the last 10 reworded IMO
So I searched up are trendlines ineffective and came across you XD
after a while of using trendlines today I felt like they are pointless... Like I could understand price rejecting of a horizontal line but a diagonal one??
After a few minutes of thinking I came to realize it's not that price reacts to the trendline the price reacts to other stuff might be a previous support such as the grey rectangles in the chart
So it's not that the price reacts off the trendline but it reacts off the support or resistance (or anything else like order block or whatever
Hopefully u get my point
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  • #163
  • Feb 5, 2023 12:23am Feb 5, 2023 12:23am
Quoting newyear498
I am starting this thread out of interest if anyone else has the same view as me... that trend lines don't work I have over a while learned why trend lines do APPEAR to work 70-80% of the time.. but I have notice why they really don't.. and what is causing them to look like they work.. In any case I know everyones going to go "oh that newyear guys an idiot he doesn't think trend lines work" haha.. ok thats fine.. but I understand why they don't work.. I love seeing people using RSI when they don't understand why or how RSI works.. and same for every...
Totally agree with you. Trend line doesn’t work and most people’s levels are just random lines. Pivot levels are just coincidences.
  • #164
  • Feb 5, 2023 1:21am Feb 5, 2023 1:21am
Quoting newyear498
I am starting this thread out of interest if anyone else has the same view as me... that trend lines don't work I have over a while learned why trend lines do APPEAR to work 70-80% of the time.. but I have notice why they really don't.. and what is causing them to look like they work.. In any case I know everyones going to go "oh that newyear guys an idiot he doesn't think trend lines work" haha.. ok thats fine.. but I understand why they don't work.. I love seeing people using RSI when they don't understand why or how RSI works.. and same for every...
How do you do your trendlines? Can you break down your process?
Trading is gambling. So gamble responsibly.
  • #165
  • Feb 7, 2023 10:52am Feb 7, 2023 10:52am
Quoting TheMaxx
Is the reason trend lines don't work because they way they are drawn is subjective?
In terms of trading, nothing ever works 100% of the time; if it did, we could all set up shop and repeatedly trade the same pattern with incredibly high leverage without having to worry about losing money. The potential that something won't function properly is necessary for markets to function effectively. It all depends on how you interpret the information and how much experience you have. Some of my most profitable trading systems rely on broken Trend line resistance/support. Knowing the difference between a genuine breakout and a false one requires experience. You'll get trampled if you don't know the difference. When a trend line breaks under the correct conditions, some traders and money managers become ecstatic because they perceive this as an opportunity rather than a failure.
  • #166
  • Last Post: Feb 23, 2023 5:03am Feb 23, 2023 5:03am
Trendlines do work only when you use them ryt most people dont know how to use them they must only be used as a comfirmation and an indicator for direction not for entries or solely depending on it for trades.
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