Do Trendlines work?

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

  1. jem

    jem

    That hiking trail thing would have had me falling off my chair if I did not have some lingering doubt as to whether Jack really was a smart guy on a different fractal/frankel.
     
    #251     May 5, 2005
  2. duard

    duard

    Question?

    Do traders prefer longer or shorter hemlines?

    I mean trendlines. If a shorter hemline is preferred, then should a stop and reverse to doggy be employed?
     
    #252     May 5, 2005
  3. Trendlines have to work, they support prices, except trendlines that only rest on prices.
     
    #253     May 5, 2005
  4. #254     May 5, 2005
  5. I would like to summarize this trendline discussion.
    1/There are people who do not know how to use trendlines so they keep posting that trendlines do not work.
    2/There are people who know how to use trendlines.

    Trendlines are derived from price and time and can be drawn on any derivative of them which means that trendlines are at least equal to all other price based indicators.Who thinks otherwise is simply not well versed in TA .Which is ok with me.

    Trendlines can be used to identify future times when the probability of a profitable trade is the highest . This must be done in the fractal manner to increase the win/loss ratio.
    This combined with cycle analysis will work on any time frame and any liquid and volatile market.
     
    #255     May 5, 2005
  6. MAESTRO

    MAESTRO

    Hi Walther.
    Before I reply I would like you to know that you are one of my favorite posters on ET. Having said that I still would like to argue that trend lines are not more then a psychological trick that your eyes are playing with you. Please do the following experiment:

    Take any chart, pick any point on it and draw any straight line at any angle on this chart. Look at the result and use the same logic as you'd use to "read" normal trendlines or you'd use to "explain" the price behavior. You are in a big surprise :)

    Now, I'm not saying that the trendlines are right or wrong, what I'm saying is that there was no conclusive research done to formally prove that the trendlines depict a point on the chart that would have grater probability for the price to go up or down. There is no formal way to test it and there is no evidence to conclude that they could be used as a prediction tool.

    Go to the park, lie down on the grass and look at the clouds and shapes they are forming. I bet you you'll see the "breakouts", "support" and "resistance" lines etc. Its all in your head! In other words: - MYTH , a product of your imagination!
    I hope you are cool with this discussion :) :cool:

    Cheers.

    P.S. I still love your timing indicator. :)
     
    #256     May 5, 2005
  7. Grob106 <> Grob109
     
    #257     May 5, 2005
  8. MAESTRO

    MAESTRO

    This is outstanding!!!! Thanks a lot for this link! I'll have so much fun in the office! Great entertainment! :D :D :D
     
    #258     May 5, 2005
  9. Makosgu. It's an "in joke" by a member of the B-Team. Before your time here.
     
    #259     May 5, 2005
  10. jem

    jem

    maestro are flag patterns figments of our imagination.

    If you say no then you know trendlines sometimes work because they frequently contain the flag.

    If you say yes. You have not watched charts. I say go back and look at some charts. Try looking at the hourly s&P charts form last month or the monthly/weekly dow chart.

    I commented on the flag -- here in elite trader months ago as it was forming and made predictions.
     
    #260     May 5, 2005