so i guess everyone here thinks its not possible to have a system that uses a lot of lines?? i want to find price levels that have multiple confirmations of support or resistance. i find that when i just draw the major trendlines, they dont seem to have any reliability. i liked the idea of drawing a crap load of lines cuz then i could see areas where they converge, which SEEMED to signal a decent move, but im just trying shit out so everybody calm down. Lucrum, Goldenarm, Datamerc, Mike, Rolex, Glowy.......whats the basis of your trading?
on a tick chart you would have to have your chart draw them automatically. i wasnt planning on using a tick chart, that was someone else.
what do you think about me using 3 or 4 time frames and only drawing major trendlines, and real trendlines too, and not just every possible line??? the goal would be to zero in on a trendline breakout, using say...daily, 2hr, 30min and 5min charts............maybe not the daily i dont want to create a 1970's rock concert at jack hershey's house
On TradeStation the lines are auto-potted and you can remove the history so you only see the very two last lines.
Here is an example of what im talking about 3 time frames, just trying to draw major trendlines if there IS a breakout on the 5 min chart, and if there appears to be a POSSIBLE breakout in the longer term charts, then i could enter on a PULLBACK to the trendline, maybe a point before to be safe. this should lead to big moves on the 5 min chart so i could just use a trailing stop (pivot highs/lows) to exit with maybe a 5-7 point initial stop loss. does this simple strategy have any merit? what could i do to improve my chances of getting into a big move?
The problem with having too many lines is that you create too many potential entry points. If you stick to a few major trendlines, then you will have fewer but stronger entry and exit signals. It will prevent overtrading and information paralysis. Plus you will retain your sanity.
OP You've come into a forum where 95% of the traders in here are 3 steps behind you and your asking them for advise? The market is chaos and your goal is to make it make sense to YOU and if drawing lines helps you see it clearly then you have achieved YOUR goal. That's the true meaning of the acronym KISS. Study and test all on your own and forget this place for anything but entertainment.