I have gotten tired of using indicators, they just confuse me and slow me down. I have become very interested in being liberal with trendlines. So i decided to stop using crazy indicators and just 1 time frame. Here are a couple examples,(all i have had time to do so far), and no, i do not expect or say that it would always look this good...but it would kick ass if it did!!!....it would be awesome if its something i stick with too, i have been practicing enough. im waiting for monday to try it in real time. let me know if you do something similar, thanks
here is 11-17-2008 i will draw my lines on a bunch of days leading up to 12-12-2008 for research. (it keeps me off the street and out of trouble) im waiting to try this in real time, hopefully on tuesday 12-16-2008 since on monday i gotta do some chores. and people stop driving like maniacs during the holidays!!
These charts would give me a serious case of analysis paralysis! It would take hours to draw those trendlines and being a daytrader, I would have missed the optimal entry points. Whatever happened to the K.I.S.S. style of trading?
K.I.S.S. - what I see in these charts is a classic move: If it pulls back and pivots at a higher low, you'll catch a nice bounce.
im going to use this while daytrading. it is simple to me. any ape can draw lines, its simple guys. one time frame, no indicators, no research, no news, just price and its lines. only takes a couple seconds to draw each line, and im going to trade on a 15 min chart.... Ill draw alot on there after i wake up in the morning, so alot will already be on there by the time the stock market opens and the index futures start popping, ill have plenty of time
Fast forward to about 6:30 to see similar amount of lines: <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/Rp6-wG5LLqE&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/Rp6-wG5LLqE&hl=en&fs=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
OP, you are going to trade this off a 15 minute chart, right? When will you enter the trade? When the bar crosses the trendline or when the bar closes over it? What are your risk:reward parameters? You can save yourself a ton of work by using a auto-trendline plotter like the one TradeStation provides. But then again, you may not care since you have a lot of time on your hands. Welcome to the world of chaos. Good luck.
Out of all those lines it is bound to happen that price is going to cross somewhere. Its like saying with 1 line you have a 10% chance, 2 lines 20% 40 lines 100% that it is going to happen. Keep it simple and only draw major trendlines. Not a line off of every little blip in price. Try it out realtime and see if it works for you, I think that after a while, even if it does work, you will get tired of all the mess and look for a more simple approach.