Does Anyone Use Trend Lines To Signal Exit Points? And Can they be automated?

Discussion in 'Strategy Building' started by achilles28, Nov 1, 2005.

  1. achilles28

    achilles28

    Well, you're probably 10 steps ahead of me. Im still learning how to program in Wealthlab.

    Have you thought about programming a time and/or price delay into your trendline generator? I've found the natural tendancy of the market is to pullback after a decent move, thus violating the original trendline.

    Incorporating a time delay or lag before generating the trendline would be effectivily similar to Grobs trendline recalbriation of point three - skipping the first point three entirely and connecting to only the second point 3.

    If you're not familar with Grob, don't worry, you'll have no idea what I just said. Its worth checking out.

    The net effect of adding a time delay or waiting until after a major pullback then reversal is a more viable and sustainable slope to the trendline that can better predict the movement while avoidng several short term violations.
     
    #11     Nov 2, 2005
  2. achilles28

    achilles28

    Yes, Im pretty much of the same opinion. A real treasure.

    His confluence theory of price movement - the nexus of long, medium and short terms trends pinpointing the next area of significant movement - is particularly exiting.

    I still don't get exiting on the left side of the channel though. I haven't read all of his work. Perhaps I've missed it? But the idea of exiting on the left and morons exiting on the right still eludes me?

    I understand the justification - to preserve and lock in profits before a decline. But I dont understand how a trendline failure can be predicted at the left side after a full traverse from right to left. Since we dont know it'll fail when we're on the left side until its already gone to the right, and then failed. Know what I mean?
     
    #12     Nov 2, 2005
  3. 1/
    Not just that , trendlines can identify dominant price levels

    2/
    I am light years ahead of Jack as far as trendlines go.. There is no paralel whatsoever.
     
    #13     Nov 3, 2005