Does trendline work?

Discussion in 'Technical Analysis' started by GloriaBrown, Aug 17, 2019.

  1. easymon1

    easymon1


    eur 2020 0826 w.png
     
    Last edited: Aug 26, 2020
    #181     Aug 26, 2020
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  2. rcsmie

    rcsmie

    trendline is simply the result of the collective sentiment.
    If you compress all the candle bars the trend lines cross.
    you will get something like this.

    [​IMG]


    it tells you at which point, the collective result from every trades stops going lower then reverse.

    You could imagine it as a market place slowly gets more and more crowded.
    there're people leaving and coming all the time. Each of them has mind of its own(like a trading bot or person who follows one's own logic to participate).

    Since each bot would stick with the same algo. without switching to a completely different set of algo. its action would be somehow linear.

    without sudden change of environment(bus full of people dropped off, terrorist attack etc.)
    It should more or less come up with the result like the trend line.
     
    #182     Aug 27, 2020
  3. easymon1

    easymon1

    interesting
    where can more be found on this idea?
    what is it called?
     
    #183     Aug 27, 2020
  4. comagnum

    comagnum

    Do trend lines work? You be the judge.

    upload_2020-8-27_15-24-57.png
     
    #184     Aug 27, 2020
  5. userque

    userque

    I wouldn't consider this evidence that they work.

    20/20 Hindsight ... Cherry picking ... etc.

    Evidence would be showing them working in real time, a video of someone trading with them (even if it's just sim trading, or just making real time calls) for example.
     
    #185     Aug 28, 2020
  6. In this chart, trend was down, price then pulled back up then started to fall. Using R and S lines we see price within a range that is wide enough to trade.

    Trade setups were made short with overall current trend near top of range targeting bottom of range for scalp trades. Risk was reasonable vs reward. CL 4-27-20.jpg
     
    #186     Aug 30, 2020
  7. Trendline itself is not a strategy, you need to combine it with other signals for better evaluation of its effectiveness.
     
    #187     Aug 30, 2020
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  8. easymon1

    easymon1

    dobo.png
     
    #188     Aug 30, 2020
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  9. rcsmie

    rcsmie

    It's just something I figured out while staring at the monitor drooling.
    The most important realization for me is that the market isn't 5 or 10 major participants but a huge collection of entities.
    We are simply seeing the end result of a collective movement.
    So to switch to a different mind set would probably help you to look/use the tools with a different approach.

    I guess it could be called DICK, displacement in candlestick
     
    Last edited: Aug 31, 2020
    #189     Aug 31, 2020
  10. Tradex

    Tradex

    "Tradeline" instead of trendlines, and "fastesr" instead of fastest, let me guess, 4th Heineken? ;)

    Trendlines work in any time frame (that includes day-trading on the 5 or 15 min charts), if you know how to deal with the false breakouts and the phony "pullbacks".
     
    Last edited: Aug 31, 2020
    #190     Aug 31, 2020