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How can I draw trend lines correctly?

  • #41
  • Dec 23, 2012 11:07pm Dec 23, 2012 11:07pm
you know I keep hearing that.....and frankly i don't buy it.


respect everyone's beliefs......there is many ways to profit.

we can ALL profit, and all our ideas are equally valid.

In every field there are optimum ways to do things, and there are correct ways to do things.......variations on the methods exists but there are always optimum ways to carry out a task....and poor ways to do so as well.


let's respect each other however stupid or however we choose to analyse the market.........sounds more like religion than financial decisions.


IS THERE REALLY NO OPTIMUM WAY TO TRADE?
AVT INVENIAM VIAM AVT FACIAM
  • #42
  • Dec 24, 2012 12:03am Dec 24, 2012 12:03am
I think having a trend lines with the use of Fib ... is the best way to find best entries ... I mean price will always retrace ... so place your trend and use your fib ... here you go ... easy pips ... thats why I want to master trend lines and fib ... fibtrend
let the chart to be your chauffeur ... -Forexmnstr-
  • #43
  • Dec 24, 2012 12:12am Dec 24, 2012 12:12am
Quoting Harry Johnso
Its interesting that you would make any comment at all without knowing how I trade, what I use to find entries, what time frame I operate under etc...
Trading is not about right or wrong, the sooner people realise this, the sooner you can get on with making some money.
This is the last you will hear from me on this thread.
My best wishes to all genuine traders.
if trends are lagging , indicators lagging whats left is just your brain and some random candlesticks ... if you dont use trends ... what do you use please share ... if there is no answer why have you posted here in the first place?
let the chart to be your chauffeur ... -Forexmnstr-
  • #44
  • Edited 3:00am Dec 24, 2012 2:01am | Edited 3:00am
Let me refer you back to my original post on this issue. I am asking you to question what you expect trend lines to achieve. You need to question everything you place on your charts and ask yourself 'does it help me?"
If the answer is NO, then remove it and look for something else.
It is not for me to tell you how I trade. I am not about to give away the ranch.
If you tried to trade my system, you would prolly lose money as you would not have the belief system to go with the trading system.
You must build and trade YOUR system and believe in it.
Stop looking over your shoulder to see what others are doing and put in the hard yards to work out what actually moves price. For example, trend lines do not move price - they simply record where price has been. And not in a very positive way. Price moves in waves, trend lines are straight lines.
You could consider trend channels to see if they help.
Read thru my original post and see if it helps you. If not, that is also fine.

If there was only one way to trade, that would have been discovered ages ago and the whole world would know it. Then no-one would be making any money.
In this business, for you to make money, someone else must lose some. This business does not value add anything. There are buyers, sellers and brokers. Each is wanting their share.
I would suggest having a break from staring at charts at this time of year, do some reading, come back in late January when there should be some trend in the market again.
At the moment there is no trend. EUR/USD has come off a long trend and has not yet established where it is to go from here. Looking at charts at the moment will be very unproductive. The market movers are all spending their profits.

One of the most important things is to keep complete records - of your trades, of the trades you saw but did not take, of what you were seeing at the time, of what you were thinking at the time.
Review every trade as soon as it is over to see what you did right, what you did wrong, what you can learn for the next trade.
There will be patterns of behaviour (both market behaviour and your behaviour) that you can build on.
There will be recurring issues like "got in too early", "got in too late", "missed the upcoming announcement", etc that you will need to master.
Keep note of the time of day your positive trades occur. It is a not so well known fact that inexperienced traders lose money during times of high volatility - at London Open!!!!
Maintain good notes and refer to them each day before you start to view the charts. This is a business. You need some business rules. Start to think like a business owner rather than a trader. If you had a trader working for you, what rules would you put in place for them to follow.

Trade to become a better trader, the money will take care of itself.

Merry Christmas or whatever you celebrate.
  • #45
  • Dec 24, 2012 4:54am Dec 24, 2012 4:54am
Gonefishin,

Thank you very much for your useful posts (knowledge sharing).

Best Regards,
Anton

Quoting gonefishin
[list][*]to be considered a low, the candle needs to be the lowest candle with two to the right that are higher, and two to the left that are higher[*][*] to be considered a high, the candle needs to the highest candle with two candles to the right that are lower, and two to the left that are lower[*][*]in an uptrend, to draw an uptrend you will need the low and a high, then a retracement (low) with a new higher high.[*][*]in an uptrend, each high will have a preceding low.[*][*]Connect only the low candles when a new higher...
  • #46
  • Dec 24, 2012 6:29am Dec 24, 2012 6:29am
Quoting forexmnstr
I think having a trend lines with the use of Fib ... is the best way to find best entries ... I mean price will always retrace ... so place your trend and use your fib ... here you go ... easy pips ... thats why I want to master trend lines and fib ... fibtrend
Yes, "properly" drawn trend lines, along with "properly" drawn fibs, can do wonders for your trading. Agreed. GL
Time turns trend. - W.D. Gann
  • #47
  • Dec 24, 2012 7:11am Dec 24, 2012 7:11am
Quoting forexmnstr
...<>...
Can anyone here please tell me what is a denmark trend line indicator and is it available on MT4?
PRICE IS EVERYTHING
  • #48
  • Edited 3:18pm Dec 24, 2012 3:07pm | Edited 3:18pm
Quoting forex4worth
Can anyone here please tell me what is a denmark trend line indicator and is it available on MT4?
Here is a brief step-by-step description of how to draw DeMark trendlines:

Note: The term swing high and swing low (also called cycle high and cycle low) refers to the following:
In An Uptrend: A swing high is the wick of a candle that is higher than the wick of the candle to the left and right.
In A Downtrend: A swing low is the wick of a candle that is lower than the wick of the candle to the left and right.
Obviously the more candles to the left and right that are higher in a swing low or lower in a swing high makes the swing or cycle more significant.
An uptrend is where price is making higher highs and higher lows. A downtrend is where price is making lower highs and lower lows.
Drawing DeMark Trendlines



Drawing Trendlines In An Uptrend

  1. Examine the bottoms of the candles on your chart and identify the most recent candle wick that is lower than the candle wicks to the immediate right and left of it.
  2. Look left on the chart, and identify the previous low candle that has candle wicks higher to the immediate right and left of it which is lower than the current low candle.
  3. Now draw a line from the current lowest candle to the previous lowest candle (drawing from right to left).
  4. Now take the end of the newly drawn line which stops at the current low candle and extend it forward some distance (drawing from the present position to the right).

Drawing Trendlines In A Downtrend

  1. Examine the tops of the candles on your chart and identify the most recent candle wick that is higher than the candle wicks to the immediate right and left of it.
  2. Look left on the chart, and identify the previous high candle that has candle wicks lower to the immediate right and left of it which is higher than the current high candle.
  3. Now draw a line from the current highest candle to the previous highest candle (drawing from right to left).
  4. Now take the end of the newly drawn line which stops at the current high candle and extend it forward some distance (drawing from the present position to the right).

http://tinyurl.com/cyy9wd
Check the attached files ... inorder to use on MT4 ... but I think drawing trends using your brain ... is better than using an indicator

Reference: http://www.earnforex.com/articles/fo...ark-trendlines

Attached File(s)
File Type: mq4 Ind-TD-DeMark-3-1_eng.mq4   15 KB | 482 downloads
File Type: mq4 Ind_TD_DeMark_3_1_LA_Mod_03B_AIME.mq4   22 KB | 539 downloads
let the chart to be your chauffeur ... -Forexmnstr-
  • #49
  • Dec 24, 2012 3:14pm Dec 24, 2012 3:14pm
Mate ... Forextrapips ... I have seen this chart on AUD forum ... did you draw it ... if yes please tell me what does it mean and how did you draw these lines ... based on what ... Thanks

http://www.forexfactory.com/attachme...1&d=1356322963
let the chart to be your chauffeur ... -Forexmnstr-
  • #50
  • Dec 24, 2012 4:04pm Dec 24, 2012 4:04pm
let me do you a favor

forexmnstr


before you start getting in to the how, and the nuances of different trend drawing techniques ......you are going to miss the point completely if you do not know the "WHY"?

why, would you like to draw a trend line?

what are you attempting to find out with a trend line?


what would a trend line tell you about the present market condition?
AVT INVENIAM VIAM AVT FACIAM
  • #51
  • Dec 24, 2012 4:21pm Dec 24, 2012 4:21pm
Quoting the redlion
let me do you a favor

forexmnstr


before you start getting in to the how, and the nuances of different trend drawing techniques ......you are going to miss the point completely if you do not know the "WHY"?

why, would you like to draw a trend line?

what are you attempting to find out with a trend line?


what would a trend line tell you about the present market condition?
Ok ... why ... simple because ... trends actually tells us from were prices comming ... how long they are there ... when will it break ... were will it go ... its not 100% true ... but you can make it more like 70-90% true if you really know what you are drawing ... thats why
...............about mentioning many techniques ... do you know how many techniques are there ... please I dont want to know each how they work ... just please mention them all if you know ... I will search about them and will learn more about them ... just give me names of all techniques

Thanks in advance
let the chart to be your chauffeur ... -Forexmnstr-
  • #52
  • Dec 24, 2012 4:43pm Dec 24, 2012 4:43pm
Quoting forexmnstr
Ok ... why ... simple because ... trends actually tells us from were prices comming ... how long they are there ... when will it break ... were will it go ... its not 100% true ... but you can make it more like 70-90% true if you really know what you are drawing ... thats why
[i]...............about mentioning many techniques ... do you know how many techniques are there ... please I dont want to know each how they work ... just please mention them all if you know ... I will search about them and will learn more...
You are missing the point of some posts being made here. No offense but I deleted some earlier posts simply because you ain't grasping the concept yet. Technique A or technique B in drawing trend lines will hardly make any difference. Do not be a follower. I told you before pure TL drawing from gut feeling ( & obvious spotted TL's ) will work if you use it correctly. You're acting WAY too dependent on others. I guess its just a phase in your journey.
  • #53
  • Dec 24, 2012 4:48pm Dec 24, 2012 4:48pm
Quoting forexmnstr
Ok ... why ... simple because ... trends actually tells us from were prices comming ... how long they are there ... when will it break ... were will it go ... its not 100% true ... but you can make it more like 70-90% true if you really know what you are drawing ... thats why
[i]...............about mentioning many techniques ... do you know how many techniques are there ... please I dont want to know each how they work ... just please mention them all if you know ... I will search about them and will learn more...

what does a "break " in the trend line tell you?


a trend line is a line that extrapolates in a rudimentary way the current momentum behind the move, correct?


if there is a break in the trend line all it means is that the direction and speed has changed, isn't that true?
AVT INVENIAM VIAM AVT FACIAM
  • #54
  • Dec 24, 2012 4:52pm Dec 24, 2012 4:52pm
Quoting Robertk
You are missing the point of some posts being made here. No offense but I deleted some earlier posts simply because you ain't grasping the concept yet. Technique A or technique B in drawing trend lines will hardly make any difference. Do not be a follower. I told you before pure TL drawing from gut feeling ( & obvious spotted TL's ) will work if you use it correctly. You're acting WAY too dependent on others. I guess its just a phase in your journey.
thanks for your help ... to know others techniques is good ... inorder to depend on myself I need some examples of drawings to get the concept first then to develop on them ... ( to create your own system ... learn from others system ... take what you will see usefull and throw the rest ... and then start developing ) thats how systems realy work ... so assuming that iam following others just because iam asking is silly ... I didnt mean to know some techniques just to folow ... no its not like that ... but thanks anyway ... you did help me from previous posts though
let the chart to be your chauffeur ... -Forexmnstr-
  • #55
  • Dec 24, 2012 5:00pm Dec 24, 2012 5:00pm
Quoting gonefishin
[list][*]to be considered a low, the candle needs to be the lowest candle with two to the right that are higher, and two to the left that are higher[*][*] to be considered a high, the candle needs to the highest candle with two candles to the right that are lower, and two to the left that are lower[*][*]in an uptrend, to draw an uptrend you will need the low and a high, then a retracement (low) with a new higher high.[*][*]in an uptrend, each high will have a preceding low.[*][*]Connect only the low candles when a new higher...
if you look at how he draws the trend line you can tell that it really doesn't matter even when you violate the rules he puts forth........at the end of the day what matters is price.......and your speculation of were price will be next.

a trend line can tell you of the speed and trajectory of the current impulse wave.............it logically follows that once the momentum fades, or the conditions change your trend line will no longer align to the current market movement. As I have said before in one of my posts a line will not open the doors to riches, you have to be able to use this tool into a broader strategy with solid reasons WHY you are taking that position, price moves according to macro economic factors.

A chart can never be more than statistics of past transactions plotted for you to visualize price and price movement.

what can you infer from current price? why do you think price will move.....it has to be deeper than a fibo, trendline, or formation.....you are using a chart to study price and you think price will move because of your chart....becomes very circular very fast.
AVT INVENIAM VIAM AVT FACIAM
  • #56
  • Dec 24, 2012 5:04pm Dec 24, 2012 5:04pm
Quoting forexmnstr
thanks for your help ... to know others techniques is good ... inorder to depend on myself I need some examples of drawings to get the concept first then to develop on them ... ( to create your own system ... learn from others system ... take what you will see usefull and throw the rest ... and then start developing ) thats how systems realy work ... so assuming that iam following others just because iam asking is silly ... I didnt mean to know some techniques just to folow ... no its not like that ... but thanks anyway ... you did help me...
Looking forward to the day you can give your own twist to these methods. Thinking a bit outside the box is a must in this business. Otherwise the majority won't be losing goodluck
  • #57
  • Dec 24, 2012 5:11pm Dec 24, 2012 5:11pm
trendlines...
for me is it more like a channel and more like a MA channel...so it is dynamic
  • #58
  • Dec 24, 2012 10:10pm Dec 24, 2012 10:10pm
Quoting forexmnstr
Mate ... Forextrapips ... I have seen this chart on AUD forum ... did you draw it ... if yes please tell me what does it mean and how did you draw these lines ... based on what ... Thanks

http://www.forexfactory.com/attachme...1&d=1356322963
read up on geometrical shapes. sacred geometry. and like robertk said, think outside the box. then you can trade inside the box. on my android phone. will not let me capitalize letters after browser upgrade. sorry.
Time turns trend. - W.D. Gann
  • #59
  • Dec 25, 2012 2:23am Dec 25, 2012 2:23am
Nice Thread and a good read; here are my inputs on the topic

1. There is no definite method to project a TL (trend line), if you connect two immediate candle they give you an angle to trade and similar you can widen the perspective and connect two swing point and achieve the same result.

Example : http://i.imgur.com/7HANQ.png

If you look closely I have gone beyond the traditional method of connecting swing lows and highs and have connected a swing high at Point A to a Swing Low at Point B which have opened an array of trading opportunities.

Similarly I have connected two consecutive candle low and have found a selling opportunity on that one as well.

So as I commented earlier there is no definite way to draw a TL every pip will create its own trend.

2. Though there isn't an ideal way to project it but there definitely is a way to capitalize it.

The thumb rule I follow is; once the price touches the TL I wait for the close to confirm the entry direction, if the price closes above I buy and closing below I sell with tight SL's (definition of tight depends on time frame) and keep repeating the process even if I get SLED out but once the trend is resumed all the SL losses will be covered.

The key to drawing successful TL is to keep your chart clean (no flashy indicators either) and to draw one TL that you want to follow; also remember not to jump in the mid air for a hurried entry because someone somewhere hinted a direction.
Trade the Plan and Plan the Trade
  • #60
  • Dec 25, 2012 4:07am Dec 25, 2012 4:07am
Here's a live example on AUDUSD :

http://i.imgur.com/lG62I.png

Setup : Retrace expected - Sell from 1.0410; Primary TP - 1.0310 and trail from there on
Trade the Plan and Plan the Trade
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