What is the meaning of "TL touches" and/or "TLs will trade touches"?

Dear All,

What is the meaning of "TL touches" and/or "TLs will trade touches"?

What is the meaning of TL and touches?

Thanks.

TL means trendline
and touches refers to the price touching the trendline after going in the opposite direction to the trend. Then bouncing off the trendline and continuing in the direction of the trend

Thanks Steve.

Faith
I chose this example because although it isnt a long trend it shows an example of where trend line resistance becomes support
Something to consider and a good reason why you should extend trendlines to the right of the chart as they may come into use again at a later date

Steve,
Excellent point about extending the trendline to the right. Very good example of resistance becoming support. Price broke the trendline but didn't invalidate it.
You could call this;
Basic Trendlines: Part Two

And Faith,

The more TL Touches you see, the more durable the trend.

resistance becomes support.........

and

The more TL Touches, the more durable........

Thanks billflet and steve again.

Faith

Same chart
Here you have an uptrend and a downtrend
Where the lines cross can sometimes be an important area
Though in this case I hope it isnt hit as I am already long

Hi Steve

Is your long entry in the green candle which is completely passing through the resistant line?

Faith

Hi Faith
My entry is just at the top of the 1st bar over the trend line

I didnt use a cross of the trend line to enter

Trendline breaks can be used as valid entry points but I look for breaks of shallower angles of trends.Then you can use points bellow the trend line as a stop loss and a steep line means the stop can be quite a way from the entry.

Steve,
Excellent point about extending the trendline to the right. Very good example of resistance becoming support. Price broke the trendline but didn't invalidate it.
You could call this;
Basic Trendlines: Part Two

And Faith,

The more TL Touches you see, the more durable the trend.[/quote]


Hi billflet sorry I didnt respond to your post before hope you are well.

Faith

My last post probably didnt help much with trendlines as far as using them as entries goes,but trendlines are just 1 tool in trading and for some trades are good entries and others give a guide to potential moves.

I will post a long term chart then explain

I first became interested in this trade in May

Looking at the bottom of the chart in the COT graph where the red and green circles are .When the commercials and traders net positions come together (red circle) then part (green) price tends to make a bottom.Also this happens about this time of year.

The price hit the trend line and bounced in May ( a bit early) confirming the trend (a)

Price then rose to (b) ( this is the hard part watching the price rise as it was too early in the year and a price doesnt usually just turn and carry on)

Price then droped to (c) which was a 76% retracement of (a to b) (in some books I think this is known as a 1-2-3 move---someone correct me if I am wrong)

I then waited for price to rise before entering

Price rose a little then fell confirming the resistance trend

This is a dilema in do you wait for the price to break this trend (only 2 touches when I entered) or do you enter at (c) with a decent stop loss as I did

This might not be Forex but its an example of long term trend lines and having to wait for more factors in your favour.

Then again it might drop like a stone next week

Dear Steve,

Thanks again for your further explanation.

Faith

Looking at my charts I remembered this thread and thought I would follow up on post 7 and trend line crosses.
The crossover at point A did not come into play but the crossover at point B with the longer time frame trend line became an important area

I see.