Short term resistance trendlines of the Dow, SPX and COMPQ are all broken now, wait and see what will happen next.
Well, I am sure you will destroy my argument by proving that they ARE self-fulfilling. Without just depending on your opinion and beliefs, of course. I will never give happy responses to people who delude themselves that things must work because they MUST. The "95% of leveraged traders who lose their money" paradigm is much more convincing that the widely followed things are very suspect.
Quote from athlonmank8: "HOWEVER, with that said they DO work simply because they're self-fulfilling. " This is a constantly invoked, yet completely unproven statement. It is one of the favorite beliefs of the TA crowd. lol are you in denial or something? They're not 100% if that's what you expect. But they're worth using. Now how does this back up the original "they DO work simply because they're self-fulfilling" again? You are proving that it is indeed true? Please post your response with this proof below. I cannot wait!
Some long while back I know I referred to BO's on trendlines/channels as triggers. However BO's can be timely or too slow. Over the length of the market day open to close, they are not good enough as a sole operating system, assuming of course that you are utililzing the natural gyrations of price as they operate in a continuous sequence (turning around your position each time to buy upmoves and sell downmoves sequentially).
----------------------------------- * ...they MAY have value... * ...that was an opinion... * Unlike many TA followers, I only use numbers... Elsewhere you said they (trendlines and s/r levels are not TA by implying they fall under PPA. However, you state in your own words by labeling trendlines and s/r levels under the column as Pro under the umbrella of TA. Therefore, what would cause you to think they MAY have value and why do you think your opinion is different from the opinion of a profitable trader using TA. Please clarify the foundation for your opinion about why you think trendlines and s/r levels MAY have value considering you keep saying unlike TA followers you only use numbers. Also, why is your opinion different than the opinion of those that actually use TA or PPA... You often criticize other's for their opinion that TA has value. Do you actually use PPA or is this just another opinion that it has value. Last question...please provide several examples of PPA because it will clarify to many (including myself) how you are defining TA and PPA. With that said, we all know and can agree that there's some weird stuff out there (e.g. astrology mathmatics) that some are trying to label as TA. However, you need to provide PROOF that trendlines and s/r levels are not Technical Analyis but instead are Pure Price Action Analysis... As if Price Action Analysis is not Technical Analysis because there's some contradictions in your above statements. Mark
I updated mu200411's chart with what I feel are some significant trendlines and S/R areas..... and a question. Oh, and regarding mu's comment on "not betting your life on trendlines" I wouldn't bet my life, or even 20% of all my capital on any technical analysis.