Drawing intra-day trendlines

Discussion in 'Technical Analysis' started by golablue, Sep 19, 2005.

  1. The purpose of this thread is to discuss the "art form" that is drawing a trendline. Specifically, this thread seeks to identify the different manners in which trends are identified on intra-day charts (3,5 minute). This thread seeks responses from traders who successfully utilize trendlines as their primary trading strategy; from those who live by the mantra that, "the trend is your friend." That said, how do you:

    1. Define a trend?

    2. Quantify the number of "points" (RH's/RL's) for a valid trend to be in place?

    3. Define those "points?"

    4. Define the violation of a trendline?

    Examples are encouraged and appreciated.
  2. Rather than us tell you, here's a suggestion more valuable.

    YOU define all of those items in the MOST SIMPLE terms possible.... that's what you use.
  3. The purpose of the thread was to share ideas and encourage people to think about their trading in new and different ways.

    It is a shame that people prefer to lambast those who are comitted to attempting to expand their knowledge base and the knowledge base of others.

  4. If you don't know the answer, just say so!!! :D

  5. ===================

    Peradventure the most helpful thing to mention is;
    counting slippage/commissions,
    wouldnt call a 3 minute chart a trend or a friend.

    Call it noise & dont bother with trendlines:cool:
    2 hour candle hi/lo maybe an occasional friend.
  6. You may want to take a look at horizontal trendlines that are made by software. Trade-Ideas has them for support and resistance levels and QuoteTracker has them for linear regression
  7. johnab


    Why not use Elliott Wave instead of trendlines.
  8. There have been a number of excellent threads on trendlines. You might search them out.
  9. Trendlines measure vibration. At least if used intraday as then there is calendar time.
  10. In my opinion, the use of trendlines is greatly "underutilized". I think most traders feel that something so simple can not possibly help them very much or more so that they have very little validity.

    I can not answer all your questions, only give examples of how I do it. Number one I do trade 3 or 5 minute charts. Generally, I begin my analysis with daily to get an idea of the general trend. Then I filter down to look for channels during corrections, etc. I will mostly trade a 987 minute chart, 180 minute or sometimes the hourly channels. I apply this to currencies, but trendlines work on any tradeable instrument.

    Look for a recognizable high, then if in a current move down, find the next higher low peak and so on and start drawing lines. It is really like a puzzle. There is no right or wrong answer in my opinion, just some that are better than others. Also, if your trading platform has fib speed/resistance fan this is very good to either give you an idea or just use for your channels.

    Here is a chart of the EURO FX with trendlines drawn down off the 1.3687 highs. Very simple which is all I can undestand anyway.
    #10     Sep 24, 2005