The Trouble With Scribbles

Discussion in 'Technical Analysis' started by Buy1Sell2, Mar 30, 2015.

  1. Buy1Sell2

    Buy1Sell2

    Diagonal lines are dynamic in time. Horizontal scribbles are static in time. Drawing a line under yesterday's low doesn't mean anything with respect to what is happening today.
     
    #121     Apr 4, 2015
  2. Buy1Sell2

    Buy1Sell2

    But they don't all draw it the same.
     
    #122     Apr 4, 2015
  3. Buy1Sell2

    Buy1Sell2

    #123     Apr 4, 2015
  4. dbphoenix

    dbphoenix

    Last edited: Apr 4, 2015
    #124     Apr 4, 2015
    lajax and Bern like this.
  5. dbphoenix

    dbphoenix

    How to Draw a Trendline/Channel:

    upload_2015-4-4_5-39-56.png
     
    #125     Apr 4, 2015
    lajax and Bern like this.
  6. k p

    k p

    Actually, this is I think where you are quite wrong and something that I can confidently say through my own testing. On many days, price will often turn at an overnight high or previous day high, or overnight low, or previous day low. This tells me that lots of traders are aware of where price turned before, and they nobody wants to pay higher, or sell for lower again. The fact that these are static as you say makes it less arbitrary because there is no way to change this number, no way to "get it wrong".

    Now it of course does't happen all the time, but I can say with much confidence that price levels along the horizontal make for excellent trade opportunities.
     
    #126     Apr 4, 2015
  7. Gringo

    Gringo

    Ignorance is bliss. Be active in using ignorance.
     
    #127     Apr 4, 2015
  8. dbphoenix

    dbphoenix

    Unless one doesn't know enough to come in out of the rain . . .
     
    #128     Apr 4, 2015
  9. fortydraws

    fortydraws

    When drawn according to DbPhoenix's clear instructions, they will all be drawn identically so long as the scribblers are using arithmetic scale.

    [​IMG]

    [​IMG]
     
    #129     Apr 4, 2015
  10. fortydraws

    fortydraws

    Has ET been screwy for anyone else this weekend? When I pt the above post together, the last visible post was B1S2's, and then I hit enter, and I see I am very late tot he party. I wouold delete mine, since DbPhoenix already posted the same charts, but I think that those instructions cannot be repeated enough, so I will leave them, and likely repeat them as necessary. :)
     
    #130     Apr 4, 2015