DislikedHi everyone, I was considering at what point do you consider a trend line invalid? Do you have any hard and fast rule on this? I noticed Ghous let price swing way past and Mike considered that invalid. I'm coming up on page 300 of the thread but have yet to find a "J16" answer for trend lines.
Thanks!
JasonIgnored
Trend line as an on-going trade maker or just as a definition?
I don't like "waaay past" . But I have no problems with taking a trade that has the balance of the price bar pattern on the right side of the trend line. ...The beauty of trading price bars as Jim teaches.
A great example is an inside bar that sits on a trend line. The preceding (larger bar) can disrespect the trendline for all I care. If the smaller bar (the inside bar itself) then sits neatly within the confines of the trendline again then I'd call that a great set up. Within reason of course. ....there goes that discretion thing again. lol
The less disrespect the better. ...Like all things in trading, nothing can beat taking only the best.
In terms of definition. If you can't define a clear trend line than it doesn't exist. At least for yourself. Find what works for you. You'll probably always improve over time in this area. I have. Still do.
Try drawing trendlines off of your line charts ('close price' charts) . That's when you get to see trendlines being not so perfect. Yet at the same time obviously powerful.
,Bundy
Bundy's status today: "Waiting..."