Hi Mike and dod:
It is really not complicated -- just parallel, equidistant lines. I can see how it might look like a fancy regression formula since that is what happens so often -- "price always returns to where its been."
The programer who gave me this neat little tool is the same one who did not give me the fib expansion tool
So there you go.
Anyway, its not that tough to do your own. Some trading software has a "copy line" feature. Just start on the top with at least two points on a downsloping trend, or at the bottom with two points for an uptrend. Copy that line and move it to the opposite swing h/l. Copy again, and stick that one in the middle (eyeballing is usually good enough). 3 lines suffice, you dont really need all 5 like mine shows. Make sense?
But dod is correct, the key is that it incorporates swing highs and lows. Thats why it works. In fact, it makes it easy to identify them. And it's the same reason why it meshes so well with DAZ' system.
Longer term works better. With the 60M, 4-5 days can be the start of a good one. Like everything else, its not 100%. Just one more tool for the toolbox. However, I find that once you have identified a good one, price will keep honoring it unless or until something shakes it out of the channel. I put them on all TFs. I try to pick a color that fades to the background so I can still see it but it doesnt dominate the landscape. Price should do that. If it fails, just delete it. Keep the ones that hold price.
Below is an example of what else you can do with it. Now we have a possible uptrending channel off the longer term downtrend on that EUR. Who will win this battle? Who knows. But have a look at the outer upper and lower lines which project a simple pattern shape (some type of triangle). One thing you find is that when these outer lines of opposite slope intersect, something usually happens with price, one way or the other. Sometimes, it just explodes out of there. I've always assumed it's because of the extra amount of stops and other orders that collide in that zone. Interesting? Since you are reading this thread, you probably think so, just like me
Maybe tommorrow I will really freak you out with a pitchfork to project price once it violates a TC. Dont laugh too hard, it can also be a handy little tool under the right conditions.
In the meantime, we'll see what happens, if anything, with this one.
I love the way u draw the linear regression, hope am rite? i have to watch it closely, they will guide one very well.
It is really not complicated -- just parallel, equidistant lines. I can see how it might look like a fancy regression formula since that is what happens so often -- "price always returns to where its been."
The programer who gave me this neat little tool is the same one who did not give me the fib expansion tool
So there you go.Anyway, its not that tough to do your own. Some trading software has a "copy line" feature. Just start on the top with at least two points on a downsloping trend, or at the bottom with two points for an uptrend. Copy that line and move it to the opposite swing h/l. Copy again, and stick that one in the middle (eyeballing is usually good enough). 3 lines suffice, you dont really need all 5 like mine shows. Make sense?
But dod is correct, the key is that it incorporates swing highs and lows. Thats why it works. In fact, it makes it easy to identify them. And it's the same reason why it meshes so well with DAZ' system.
Longer term works better. With the 60M, 4-5 days can be the start of a good one. Like everything else, its not 100%. Just one more tool for the toolbox. However, I find that once you have identified a good one, price will keep honoring it unless or until something shakes it out of the channel. I put them on all TFs. I try to pick a color that fades to the background so I can still see it but it doesnt dominate the landscape. Price should do that. If it fails, just delete it. Keep the ones that hold price.
Below is an example of what else you can do with it. Now we have a possible uptrending channel off the longer term downtrend on that EUR. Who will win this battle? Who knows. But have a look at the outer upper and lower lines which project a simple pattern shape (some type of triangle). One thing you find is that when these outer lines of opposite slope intersect, something usually happens with price, one way or the other. Sometimes, it just explodes out of there. I've always assumed it's because of the extra amount of stops and other orders that collide in that zone. Interesting? Since you are reading this thread, you probably think so, just like me
Maybe tommorrow I will really freak you out with a pitchfork to project price once it violates a TC. Dont laugh too hard, it can also be a handy little tool under the right conditions.
In the meantime, we'll see what happens, if anything, with this one.
)).
