qqqq channel hasn't broken yet

Discussion in 'Trading' started by dtrader98, Jan 25, 2007.

  1. Slim chance to use microsoft as catalyst to turn pivot pt. and keep channel intact. Otherwise big sell into close tommorrow= short bias.
  2. I mentioned this on the other qqqq post, and did not hear a response from you, so I'll repost it here:

    On your trend channel, I think you need to adjust the lines. On the bottom line of the channel, the line should run from where you started it to the six or seven candlesticks from the beginning of this month. When that line is drawn, you can also see the support/resistance that trend line made for last wed, thur, and fri trading. The channel has already been broken out of.

    Now if you move that line, I think you will note that we basically traded right off of it today.
  3. hi, i see what you are saying. Although, it's a subjective interpreatation (like all charts). I made the channel the way i did, because the boundery lines run parallel and don't violate the three points used to create the top line of the channel.

    There is definitely a lot of volume on these last few drops, however, and your interpretation makes a strong argument for a broken trend. Personally, as I mentioned earlier, I think a lot of this has to do with treasury auctions this week, but i won't argue with the trend i've drawn if it breaks and holds it till the end of the day. Especially, if the weekly channel is violated at the end of this week.
  4. Not that I know what I'm talking about, cuz I don't, but I would've drawn the trendlines like this.

    Mine are in blue, obviously.
  5. This thread should be renamed...

    "Reasons why TA is a bunch of nonsense"

    1) Everyone interprets a chart differently

    2) Charts are great to show you where the stock has been

    3) See # 1
  6. Here is my version, with a pink line. :)
  7. Cool, they can bend!
  8. How do you trade, then? Are you one of those price and volume guys? Teach me.
  9. Drew07


    I'm curious too. I'm pretty new to TA and the more I learn the more I don't understand how it's possible to day trade without relying on a lot of TA indicators unless you have inside information. How's it done?
  10. technical analysis is subjective. I already said that earlier. But, it's a bit more scientific in my opinion, then -- oh, you just buy when the trend is up, and sell when it's going down, which is about what half the alternative comments are posting. What is a trend? Back to subjectivity.

    At least a channel trend is a little less subjective, than say elliot waves. What alternative would the other posters suggest for a systematic based approach?
    Just about any system you come up with is ultimately going to be subjective, including a random entry guess with exit decisions based upon win/loss outcome.

    About the only systematic approach that's guaranteed, in my opinion, is to have access to order flow and a lot of money, which unfortunately, I don't.
    #10     Jan 25, 2007