Quote from DrEvil: .............but price does not respect a trendline, it merely respects support and resistance. Very true, Trendlines are support and resistance. For further elaboration of this, scan through some of my posts in this thread. I show many examples and refer to trendlines as support and resistance.
honestly...you can forget all the talk unless you can define when 'a trendline is broke' for whatever time period...when it closes 1,2,3 periods under/over the trendline?...please lets get this discussion out in the open...other is meaningless until this is covered...thanks.
Sometimes, THE OTHER SIDE of the trendline (support or resistance area) can help just as much as traditional interpretations. See the attached chart. Top chart, price is at trendline (resistance) for a 3rd time. Shows respect by contract for a few bars and then breaking. Bottom chart, price is at trendline (resistance) for a 3rd time, but goes through. Then show respect of the line (now support) by contracting for a few bars and then moving up in search of a new resting point.
Sure, we can discuss that too. Personally, I look for at least a 3rd 'respect' of the trendline... A contraction at that line, and then (if going long) a tick or two, depending on the timeframe, over the high of the highest bar inside the final contraction bars. Please let me know if you have any questions. Look at some of my posts here and you'll see this over and over and over and............. EDIT: I must add, there are other factors looked at to take a trade aside from what is stated above. This just shows an example of entry after a trendline is "broken"
Hello Guys, I try to trade trends since long time ago, but with no success. To me the trends are just not reliable enough in order to trade them profitalilly. The chart above just confirm what I say. It's tipical situation. Regards and cheers.
This chart has multiple timeframes lining up and building energy for a move. From the oveall bottoming pattern, to the pause for a 3rd time at this resistance area, (oh, trendline) to the small contracting/overlapping bars with tail on the top and bottom. And where would I personally consider the trendline/resistance broken? Over the high of the highest candle in the last few days of contraction. Or, under the low of the lowest candle in the last few days of contraction.
that chart u refered to above your post broke the trendline and ran 50 points to the upside, it broke and ran,just what u want,u need to change your trading strategy if that wasn't a good enough trade for u to take,if u bought above that trendline and put in a stop below, u would have no problem being successful,there is risk in every trade,if its limited,u can relax and make money
Hello again, Tradersaavy and ammo, I also try to adjust my strategy - trading breakouts. It works fine, I think. Indeed DJIA is about this point now - we will see. What I ment is that the typical trendline (not horizontal support or resistance) is not very reliable. Trendline breaks - OK. This is also fine. But once you spot a good trendline - as a rule it is too late to trade it (there are also nice exclussions from that). I have been trying to trade trendline for long lime - with just random success.
epetrov, if you take the highs from3/24 and4/02, the res tl is 1390......highs from 3/12 and 3/24 the res tl is 1402 and the lows from 1/23 and 2/22 the res tl is 1415, all these numbers are from an spx cash day chart so you will have to extend them out 1 day ,they are all upward trendlines so add a few points to the numbers,2-5 points,if we rally into monday and you are long at these points you should see resistance and a pullback,that is where these trendlines come in handy in reference to a point to exit or enter mrkt,lets just say we rally today and the spx trades up to 1384 and you think it is getting soft and you want to sell,well you might sell at 1384 and have to take 6 points of heat before it turns around or you might just wait til 1390,they become a valuable refernce tool
Hi guys, this trendline seems like a good long swing oportunuty. I'd not trade this set ups because I think this is not reliable. That's why I say that the TL do not work well enough.