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Drawing Correct Trendlines 58 replies

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The Art to Draw Correct Trendlines

  • #21
  • Aug 7, 2011 6:55am Aug 7, 2011 6:55am
Quoting nubcake
learn? that implies there is somewhere that teaches this 'proper' way. i suppose if someone gives you the secret mason symbolic gestures you will show them the light?

If you actually take the time to stare at thousands of charts over a period of time you might see it. It's sorta like those 3D Stereograms where a picture is hidden within a picture; that can only be seen by intense staring. Most people wouldn't take the time to do such a thing .
  • #22
  • Aug 7, 2011 7:02am Aug 7, 2011 7:02am
Quoting Troikaone1
If you actually take the time to stare at thousands of charts over a period of time you might see it. It's sorta like those 3D Stereograms where a picture is hidden within a picture; that can only be seen by intense staring. Most people wouldn't take the time to do such a thing .
that's not learning. that is discovering. quite a different thing, no?
Congratulations ScalaFX for coming out of the closet!
  • #23
  • Aug 7, 2011 7:09am Aug 7, 2011 7:09am
Through my experience, diagonal trend lines have proved to be more useless, and a bit similar to something more related to curve fitting than anything really useful.

That said, the more horizontal you can make your trend line, the better it will help to see the value areas in which to make your trades.

I'm sure some may find diagonal trend lines useful, but I do not. I'd rather find consolidation periods, and horizontal lines are how you do that.
  • #24
  • Aug 7, 2011 7:19am Aug 7, 2011 7:19am
Quoting walb99
eurchf 1W
Try using a reaction channel, equal distance measured from the sides of your original to capture price. When price fails or breaks a channel it usually gives birth to a new one which can be measured from the prior turns. Origins of your median sets.

Channels(which can be horizontal), wedges, consolidation patterns like to retest the center's of the formation to find support/resistance. Matching that level with confluence of other price action/TA can give a nice edge,

fwiw
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  • #25
  • Aug 7, 2011 7:26am Aug 7, 2011 7:26am
Quoting nubcake
that's not learning. that is discovering. quite a different thing, no?
One says it learning another says it's discovering............I SAY IT'S BOTH!!!!!
  • #26
  • Aug 7, 2011 7:29am Aug 7, 2011 7:29am
Quoting walb99
Gold 1W
Either your seeing a repeat of an under/over shoot of your original channel, or price is going parabolic, depending if the move is up or down, price will break it's restricting line while failing to meet the supporting..... normally the lines will converge marking a blow-off in price.

fwiw
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  • #27
  • Aug 7, 2011 8:42am Aug 7, 2011 8:42am
eurgbp 1W with Andrews Pitchfork and TLs
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/ ... clarifying decisions ... /
  • #28
  • Aug 7, 2011 10:23am Aug 7, 2011 10:23am
Quoting wallet
Either your seeing a repeat of an under/over shoot of your original channel, or price is going parabolic, depending if the move is up or down, price will break it's restricting line while failing to meet the supporting..... normally the lines will converge marking a blow-off in price.

fwiw
I don't see the need for a trendline at all in this one, since the candle groupings tell the whole story.
In A, price is on the higher side, with a bit of a whip upward.
In B, price is a heavy block on the higher side, and so a strong, straight up trend. A midline-ish effect begins, as the uptrend is double B's height.
In C, price is balanced with large candles hanging on the upside, creating a kind of box that price wispily escapes for twice the height of C's area.
Momentum fizzled, price may do a short downward balance in a proposed D before dropping as your picture denotes.
If you want, a trendline through A,B and C would connect attention and perhaps serve D.
Now that I look at it, the trendline shows the weight of each of A, B and C above and below it, further explaining how price may turn around.


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  • #29
  • Edited 10:38pm Aug 7, 2011 9:17pm | Edited 10:38pm
eu 30min
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/ ... clarifying decisions ... /
  • #30
  • Aug 8, 2011 2:30am Aug 8, 2011 2:30am
eu 30min
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  • #31
  • Aug 8, 2011 6:17am Aug 8, 2011 6:17am
eu 30min
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  • #32
  • Edited 6:34am Aug 8, 2011 6:22am | Edited 6:34am
Quoting walb99
eu 30min
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IMHO:
The left downtrend is made horizontal and broken up into detail in the right uptrend. There is no real extra energy within the right uptrend to create a breakout, beyond the tiny portion in the last box (see chart below). Thus, after a small rise, price may at least return to the midpoint of both cycles.
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  • #33
  • Aug 8, 2011 8:25am Aug 8, 2011 8:25am
Here is my version of the E/$ 30M chart. It shows progression of trends and changes over time.

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Ha-pattern, I like your boxes!
  • #34
  • Aug 8, 2011 9:04am Aug 8, 2011 9:04am
eu 30min
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/ ... clarifying decisions ... /
  • #35
  • Edited 1:42pm Aug 8, 2011 1:08pm | Edited 1:42pm
Quoting GEfx
Here is my version of the E/$ 30M chart. It shows progression of trends and changes over time.

Attachment

Ha-pattern, I like your boxes!
Thanks, that means a lot.
The boxes are just a way to highlight the current pattern, than something official like a square or a Darvas (breakout) box.

This stuff is fun, because it's almost a kind of logic.
What I really find challenging to find such a thing for are explaining more smashed-together charts, in that you use a bunch of candles as one unit of comparison instead of one candle. Still working on that one.
  • #36
  • Aug 8, 2011 1:37pm Aug 8, 2011 1:37pm
eu 30min
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/ ... clarifying decisions ... /
  • #37
  • Aug 8, 2011 2:37pm Aug 8, 2011 2:37pm
Quoting ha-pattern
Thanks, that means a lot.
The boxes are just a way to highlight the current pattern, than something official like a square or a Darvas (breakout) box.

This stuff is fun, because it's almost a kind of logic.
What I really find challenging to find such a thing for are explaining more smashed-together charts, in that you use a bunch of candles as one unit of comparison instead of one candle. Still working on that one.
Yep, I think it is a good concept for trading. I have some friends who think in that manner when doing chart analysis, too.
  • #38
  • Aug 8, 2011 2:51pm Aug 8, 2011 2:51pm
A E/$ update, with a down channel from the 4H chart.

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The PA moved above the channel when the market gapped on Sunday, then dramatically hooked back in during the day on Monday. Pink areas are previous areas of support and resistance.
  • #39
  • Aug 8, 2011 7:11pm Aug 8, 2011 7:11pm
eu 30min
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  • #40
  • Aug 9, 2011 12:00am Aug 9, 2011 12:00am
eu 30min
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