Jack, This is a great thread and you wont get flamed for being a noob. This subject is straightforward but can be confusing for a noob, but this will really help. 1. Read the first several pages of this thread a few times. Look at the charts posted and the comments about them a couple of times. 2. Check out stockcharts.com go to chart school section, its nicely organized and explains all the topics relevant to us. 3. If you're a super noob and not ashamed go to your bookstore and check out Technical Analysis for dummies. They really "dumb" it down but for a super noob its really useful. Consider this a new major in college, and you have to start with the 101 level courses. Good Luck.
Jack- Check out the book "Stikky Stock Charts"...everything you ever wanted to know about drawing trendlines is in it ..
Ok, thanks for the response. I have read over the first pages again, and skimmed through to view the chart examples. I went to the stock school website and read a little on trend lines. Basically I guess I'm just wondering if trend lines are a subjective thing or not. For example, if it's 11:00 and someone posts about a trend line, should everyone using the same chart/time frame have the same trend lines or will everyone's be different? I'm just wondering how exactly they are drawn. Sort of like how there is a few different formulas for pivot points. What is everyone here using to draw their trend lines? Or am I completely misunderstanding something still? BTW - I understand everything else in the thread - I think. I am still working on how to spot the symm triangles better. I know that you can trade the system without trend lines, but I would just like to be able to add them if I wanted...
Jack, I think that is where the difficulty can lie. As Stealth Trader had said on another Thread identifying strong trends with the eye and drawing trendlines is more of an art than a science. Thru time and hardwork you refine your technique in finding them . And your "artwork " soon transforms into Masterpieces !!
Jack or anyone else, Don't feel the slightest hesitation when you have a question. No matter how basic it sounds. In fact, the less experience you have trading the more this journal will help because you won't start with bad habits. Otherwise known as calling tops and bottoms WITHOUT SUBSTANCE and using stupid slow ass indicators as crystal balls. I usually visit, although not very active, other threads and sometimes public channels and the things I see confirm why most people fail at daytrading. On strong uptrends, you see a marathon of shorting here, shorting there, this must be a top! Followed by massive amount of stop losses or the devil himself, averaging downs (omg, I can't take a small loss, I must get it back! Then they lose even more). On strong downtrends, you see the opposite. Hell I see it in the mighty "Elite Trader" forums all the time, just funny stuff. Wonder how long it will take them to get it. The biggest attitudes the shittiest trading. ie WE GOING UP MONDAY, NO IT WILL BE BLACK MONDAY, etc etc, hilarious. Anyway.... Don't call yourself a noob you are probably WAY ahead of the rest without even starting, and that's no joke. Anek
For simple drawing of trend lines, see the following link for some basic, generally accepted guidelines (I believe this approach follows what is put forth in Sperandeo's book). Also, this is applicable to any time frame, beyond what is mentioned in the post - one can use it for tick charts if desired. Remember that the slope of trend lines (especially intraday) can change due to reports, time of day, etc, so don't hesitate to redraw to most closely follow the current pace of the mkt. http://www.elitetrader.com/vb/showthread.php?s=&postid=1311311#post1311311 Good luck ...
Anek, great tip on giving line some room. Razor or anyone else, do you still use Heikan candles for exits? I have been using normal candles for entries and switch to Heiken chart for exits, helps keep 1st and 2nd target longer.