Do Trendlines work?

Discussion in 'Technical Analysis' started by duard, Apr 3, 2005.

  1. Sorry Charly, for the delay. Trading using channels (= a pair of parallel trendlines) can be hazardous to your fiscal health if you don't fully understand what's going on. This of course applies to any trading method but for the moment we'll focus on the parallel trendline method. It's like going to a Japanese fugu restaurant where the most important person in the joint is the chef. If you don't trust the chef stick to hot dogs or stinky tofu.
    If you do trust the chef, start with the safe bits and leave those nummy thin slices of liver till later on.
    So, yes I do know what the leading indicators are but would suggest that you know CFBW cold before thinking about using them. However if you already know CFBW cold or think that you don't need to, then here they are:
    The set of leading indicators include:

    1. The YM price formations (2 min)

    2. The Gaussians on the volume of YM (2 min)

    3. The PRV bouncing ball on the YM and ES volume

    4. The strech/squeeze graphic for the DIA cash as offset from the YM futures index (instntaneous with a persistant screen record).

    5. The DOM shown as a button on five levels for both bid and ask. continuous feed)

    6. The tick chart of ES and tick volume (5 min delineations)

    7. The leading tick chart and tick volume of YM relative to ES (2 min delineations)

    BTW, thank you know who, not me, for the primer and as well thank you know who for the list.

    There are those who would say that the S/R stuff has little to do with the RTL and I would be one of them. Search ET for dbphoenix and experience the mental anguish for yourself.

    Bon appetit,

    lj

    The sunazuri of o-toro is much safer.
     
    #1561     Apr 29, 2008
  2. Charly

    Charly

    Bon appetit,

    lj

    The sunazuri of o-toro is much safer. [/B][/QUOTE]
    ###############################################################

    Thank you for taking your time to provide this huge list.
    I only wonder how scalpers and s-t traders are able to watch all these indicators and make up their mind within (sometimes) seconds.

    wow

    What do you mean by "sunazuri.??......:confused:

    Ch.
     
    #1562     Apr 29, 2008
  3. The list provided represents a comprehensive one. A trader does not need (nor should the new trader attempt) to use the entire list when learning. Start with Price and Volume in combination with Channels and Formations (the channels and formations provide context). The remnant items represent signals for 'carving the turns' during the trading day. However, if one cannot 'see' the signals on the coarse level (ES Price and Volume), no 'finer tool' can provide the keys to profitiability.

    Most who use these methods successfully started with Equities due to the slower trading fractal (daily). Once experiencing consistant profitiability, they applied the same template onto the faster trading fractal (Futures).

    - Spydertrader
     
    #1563     Apr 29, 2008
  4. ###############################################################

    Thank you for taking your time to provide this huge list.
    I only wonder how scalpers and s-t traders are able to watch all these indicators and make up their mind within (sometimes) seconds.

    wow

    What do you mean by "sunazuri.??......:confused:

    Ch. [/B][/QUOTE]

    Momentarily OT, but sunazuri is the most delectable part of the o-toro (tuna tenderloin).
    It was 'Scientist' [or else he referred to the guy] who said "sit in front of your 'T&S screen' for 6 months and you might get it". As Spyder has just elaborated, there is much to do before getting to the more esoteric bits. As Livermore said, "You need to learn what doesn't work first." Most often this has little to do with the method and more to do with what you are doing with the method.

    lj
     
    #1564     Apr 29, 2008
  5. several touches on this line and pausing once again.

    give me a little more pause here hugging the line and it has potential for further weakness
     
    #1565     May 16, 2008
  6. ammo

    ammo

    i cant transport a chart but look at the 3/03 and the 7/06 monthly lows in spx and extend that line out to yesterday
     
    #1566     May 16, 2008
  7. Not sure what you'd like us to see.
    Please elaborate.
    I have attached a chart.


    <img src=http://elitetrader.com/vb/attachment.php?s=&postid=1925767>
     
    #1567     May 18, 2008
  8. :)

    NN


    <img src=http://elitetrader.com/vb/attachment.php?s=&postid=1925774 width=800>
    click on attachment to enlarge
     
    #1568     May 18, 2008
  9. ammo

    ammo

    i was just pointing it out,but when you posted your chart,it was different,so i went back and found that i had drawn the lines incorrectly and the resistance is actually a little higher,thanks for putting that up
     
    #1569     May 18, 2008
  10. ammo

    ammo

    i went back and redid that line using july 02 and july07 on a monthly candle chart ,that catches the fat of the candle bottom not the real bottom and that tl comes in where the feb,apr and may 08 highs reversed or stopped
     
    #1570     May 18, 2008