You have drawn in your trendlines upside down. In an uptrend, the points one and three must fall on the right (bottom) side of the up trend. For down trending channels, points one and three fall on the right (top) side of the channel. I used to make the same error when I first started drawing trendlines. - Spydertrader
This is the one I had drawn as well. I didn't really see any other obvious trendlines/channels that were being held on the daily.
I think he had them drawn correctly the chart he posted just didn't reach far enough back to see point 1 and the high hit the upper trendline on 10/16 making it look like point 3.
You may very well be correct. Attached is a larger chart with all annotations and trendlines drawn in as I see things. Of course, your mileage may vary. - Spydertrader
Two questions Spydertrader: In that ININ chart you just posted you noted the last bar was "taping". Can you explain the significance of that? Also, tomorrow is a "Greenspan" day. Is it recommended to exit all position before the close today? I ask because I am in GROW @ 29.45 and IAAC @ 25.79. They both still look healthy to me for more upside direction. But I am concerned about what to expect tomorrow. Thanks for your insights!
You are correct in that the point 1 was not visible. However I can see from both charts Spydertrader posted that his method is more accurate. Thanks again Spydertrader, NH
I just noticed that i annotated the wrong chart in my previous post. I posted the chart for GROW but labelled it ININ. I apologize for the error. I plan to attach another chart shortly. To answer your questions ... Taping refers to using 2 bars to draw in the trendlines. Jack uses these smaller channels for traverses within the larger channel. One can trade both the dominant and non-dominant traverses within the larger trend. One should start out trading the dominant traverses within an uptrend when learning the Hershey Equities Methods. Jack recommends avoiding trading equities on "Greenspan Days" in many of his posts. However, if you feel your trades have some room to run, you may consider holding until a few hours before the FOMC announcement. I recommend monitoring these trades very closely should you decide to follow that course of action. On the flip side, I recall a post to Journal Two where someone held into a Greenspan Day - only to have a surprise earnings announcement hit them for a rather large loss. As always, your mileage may vary. - Spydertrader
Thanks. That is very funny. The reason I wanted to know about the taping is because I thought - "that looks just like what is happening with GROW today". And in fact it was GROW.
LOL. My apologies for any confusion. Attached, please find a correct daily chart of ININ. - Spydertrader Edit: The orange and greenish-blue trendlines are weekly trend lines drawn in on a daily fractal. As a result, they appear 'slightly' off the highs and lows on occasion.
ININ was my only trade for last night, as I didn't want to ruin a good thing with some losses elsewhere. A faulty mindset, I think, as a couple of other opportunities presented themselves. BTJ would have been a nice entry both before and after the initial pullback (yea, I know, but I'm going to try out a few AMEX stocks. I am sure it will be my undoing!). GIGM signaled a short that would have been worthwhile. My IT Trend line was that represented by the Chartscripts. I also have a smaller ST trend within it. Memories last week of BTUI hitting the upper IT trend on the same day as purchase, before coming back to earth over the next few days, creating a wash trade, still left a valuable lesson in my mind. Hence my early exit today. I think I have come to my own realization that not every trade needs to be a home run. In fact, most are not. Simply making modest returns regularly and following the rules (read: exit when price hits resistance areas) is what is working for me. Sure the stock may increase beyond my exit, but in the long run, I think more profits will be extracted through the use of modest exits, than holding out for the home run. Just my opinion, based on my own trading rules.