Drawing trendlines in realtime

Discussion in 'Technical Analysis' started by bigbrent701, Mar 5, 2008.

  1. I use the Victor Sperandeo method of drawing a trendline, the problem is his method works perfectly for drawing them in retrospect but things are different in realtime.

    Suppose you are in an uptrend and the accelerated trendline is broken after a nice size move to the upside. The market thus can "break" the trendline when in reality it could very well just be consolidating before a push higher. During this period of consolidation assuming you feel the market is going to move higher should you be drawing trendlines at minor lows that could potentially be the highest low immediately preceding the highest high. In other words when drawing the trendline do you anticipate somewhat.

    I think its safe to say that as your time period extends the slope of your trendline should be smaller and smaller, that is, its much easier to overshoot thus creating a accerlated trendline in the short term, but its impossible to sustain certain levels of steepness as the time period grows.
  2. I've never read Vic, so I have no idea how he prefers to draw in trend lines. However, If one uses Volume as a guide, trend lines (and the channels they create) become a very scientific process. As such, Price breaking a trend line on increasing Volume differs from Price breaking a trend line on decreasing Volume.

    - Spydertrader
  3. I do use volume to provide clues.

    Uptrends are drawn under the following assumption:

    Lowest Low to HIGHEST LOW IMMEDIATELY PRECEDING THE HIGHEST HIGH. As i said before there is always a correct way to draw it retroactively but in realtime should I be anticipate where the trendline will be drawn in realtime.