Do Trendlines work?

Ho Hum and a bottle of Rum... a Pirate's life for me...

 

...AFTER the fact....

..... but then this is ET isn't it....

 

Do trendlines work?

Does a screwdriver work? Well that depends on who is using it and what for.

 

Which way Yogi??

 

Different angle to the same piece.

 

EOD Ramp w/peek-a-boo


or


Fakie bounce... you decide:

 

Trendlines are only a little effective when used alone...

They're great when you learn how to correlate them with other analysis... (i.e. Fib retracements, MACD, Bollinger bands, etc).

The idea is to come up with a complete trading methodology. All good systems I've seen have these in some form or fasion-

1. Support/resistance areas (not just in price, but other indicators)
2. Price action (tick or minute chart entry and reversal patterns)
3. Multiple time frames (for more than 1 perspective)
4. Momentum (MACD, RSI, CCI, etc)
5. Profit targets
6. pre-determined risk structure


Good luck!

CD

 

they do work, in some cases

 

One more thing... "Do trendlines work?" What do you mean by "work"? Most of the time you'll see price have some sort of reaction of a trendline, but is it enough to make price pivot and continue in the original direction... trendlines alone are not enough to determine that.

 

No wonder most traders lose money, these statements are totally incorrect. It's not that hard... This is NQ right now! duh!