Does trendline work?

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

  1. So doesnt work for the rest of 2019, impressive
     
    #71     Aug 21, 2019
    murray t turtle likes this.
  2. notagain

    notagain

    they're just guidelines reflecting the markets likely navigation longterm
     
    #72     Aug 21, 2019
  3. ZBZB

    ZBZB

    TrendLines are moving averages. A lot of trend following systems use moving averages. As people keep saying, money management is more important than the signal.
     
    #73     Aug 21, 2019
    drcruz, murray t turtle and easymon1 like this.
  4. tomorton

    tomorton


    Its not true, they're not MA's. MA's are mathematically calculated and cannot vary no matter which trader is looking at the chart. TL's are projections of our own analysis and many traders will plot different TL's on different gradients and directions and significantly varying numbers of TL's.

    Where TL's and MA's are similar is that they're both poor entry signals.

    Yes, MM is waaaaay more important than the (entry) signal.
     
    #74     Aug 21, 2019
    murray t turtle and Overnight like this.
  5. It is just a straight line, not moving average.
     
    #75     Aug 21, 2019
    tommcginnis and Overnight like this.
  6. Agree here. Big difference between trend line and moving average.
     
    #76     Aug 21, 2019
    tommcginnis and Overnight like this.
  7. easymon1

    easymon1

    mr notagain,
    please, what means the
    ' end of the Fed triangle Oct 29 '
    thx
     
    #77     Aug 21, 2019
  8. easymon1

    easymon1

    position sizing can contribute strong as part of "money management is more important than the signal"
     
    #78     Aug 22, 2019
  9. @GloriaBrown
    Unfortunately, I have no stats for this particular case - just a huge number of screenshots for years of trading including stocks and futures. I`ve also found some old charts (late 60`s) and tried to apply trendlines there, and they also performed well. Thus, despite I have no .xls file with stats, I can say that if the price crosses the trendline and consolidates on the other side in approximately 70% of cases it would pass the distance equal to the distance from the trendline to the opposite high/low.
    You can also find stats on trendlines in "Encyclopedia of Charts Patterns" by T.Bulkowski. He provides very rigorous research on this issue.
     
    #79     Aug 22, 2019
  10. I scan through the book and cannot find anywhere saying how he comes up with the numbers in his book. Look like he just looks at the charts and "feel" how many times those patterns work. I doubt this is scientific at all.
     
    #80     Aug 22, 2019