Smoothness-trend method

Discussion in 'Strategy Building' started by stock_trad3r, Oct 23, 2006.

  1. It is quite easy to predict the longterm movements of stocks using the smoothness trend method

    Hoow it works is by taking a chart and converting it long term-linear scale so you can easily filterout trends that will continue and weed out those that will falter.

    IN short:

    1. The more 'smooth' a chart is for a long timeframe, the more likely the prevailing trend will continue. The 'smoothness' is determined using various functions.

    You can also use the smoothness method to draw VERY accurate trendlines.

    Predicting Google was a nobrainer using the smoothness method..I made a fortune

    The chart below shows my prediction of google using this method 1.5 months before the MASSIVE earnings pop

    As you can see, the chart was VERY smooth and still is.

    So easy to make moeny using this method. Why am I telling you? I dunno.

  2. S2007S


  3. GS19


    I have been using a similar method short term and it works for me. Better chance for a continued trend.
  4. piezoe


    That's one in a row now. Congratulations.
  5. dac8555


    Trendline drawing is as old as china...and yes, very important. No news here. Congrats on your google trade...but you need to be able to decipher information consistently over time...not just catch one or two luck trades.

    Trader Vic has great information on trend lines and how to use them. I refer to it very often.