The last Trendline sell signal worths 400, 40, 80 points. No definite buy signal yet. : Just wait and see for yourself.
I use trendlines on every trade. If I draw a support trend line and buy at support I will take that trade to the upper trendline and sell right there. If things go against me and my support trendline is violated I sell as one of the main reasons for buying the stock was based on that support trendline. Why would you hold onto a position whne one of your reasons for buying is no longer valid? So in my system the support line acts as a soft stop. If it is violated I sell. Have stocks gone through upper trendlines before? absolutely, but I stick to my method. I think you have to understand trend lines are not absolutes. Think of all market partisipanst with different strategies, time frames and methodology. I like to give my trendlines a small percentage channel on ech sode of them(say 50 cents). If markets are not trending then I will usually sell before a trendline is hit. Usually within 50 to 10 cents of that line. there is no guarantee it will actually get all the way there. I would prefer to take some profit and move on.
My opinion is that trendlines are coincidental. What's really going on is price breaking through HORIZONTAL resistance, which price retraces to and tests before continuing up to tackle the next HORIZONTAL overhead reistance. Yes you can join the bottoms and draw some nice trend lines, but price does not respect a trendline, it merely respects support and resistance.
do the same thing, easy way to trade, still working on holding for the whole move, usually trade with a bias and if its negative ,i'll buy on that supp tl and only ride it til the first pullback, makin money but i leave a lot on the table,i am a little too careful at hte moment with the overhanging gloom
No Buy Signal yet. But the next Buy Signal may worth 300, 30, 60 points. Please wait and see if Trendlines work or not.
Here is a chart from a 3 min Russell 2000 e-mini trade from today. The trend line was broken and then price came back to the trend line that was broken (also the 56EMA). Trend lines are the first critereia that I use. Subsequent indicators need to line up before I take a trade. But almost every trade I take STARTS with a trend line break.
It looks as if Trendlines do work sometimes. The Dow Jones industrial average gained 270 points, or 2.3%. The Nasdaq composite index surged 2.6%. The Standard & Poor's 500 index was 2.1% higher. http://money.cnn.com/2008/03/11/markets/markets_nyopen/index.htm