Trend lines overrated?....

Discussion in 'Technical Analysis' started by focusonmoney, Aug 18, 2010.

  1. RN,

    An example of a "right one" and of a wrong one on the same chart would add real value to this discussion. Most successful traders (maybe 80 or 90%) use trend lines and believe they have value. Yet, as you say, the right ones are money and the rest are useless. I might say even dangerous.

     
    #11     Sep 5, 2013
  2. speres

    speres

    this one worked a treat
     
    #12     Sep 5, 2013
  3. speres

    speres

    current cable
     
    #13     Sep 5, 2013
  4. speres

    speres

    They do have value because they are useable, but your right they are only a part of the structure
     
    #14     Sep 5, 2013
  5. vinc

    vinc

    #15     Sep 5, 2013
  6. That bounce off 131.20 had nothing to do with a trendline and everything to do with the downward move that kicked off from 131.20 just after 12:00.
     
    #16     Sep 5, 2013
  7. speres

    speres

    post a chart and show me pls point out anything you think relevent,im always keen to learn something

    there was actually a few things going on there and the tl was only part of it

    would you have taken a long there just based on that area you pointed out to the left?
     
    #17     Sep 5, 2013
  8. The comments made here about trend lines are for the most part valid. Not everyone is going to draw them the same way.

    However, that's fine. You really do not want everyone doing and seeing the same thing anyway, do you?

    With practice you will find that the humble trend line can be one of your most important tools. It helps you simplify the view of the chart, highlight the support and resistance levels based on prior tops and bottoms, and gives you great breakout indications.

    I have used trend lines for my charting analysis for over two decades. While I have other indicators, trend lines are still used as they have always provided me with good reference points to watch.

    It is easy to take trend lines for granted because they are so simple. Most like complicated methods which I consider a detriment.

    Practice drawing trend lines based on how YOU see the chart patterns and soon you'll be able to recognize all kinds of valuable information coming from your charts using this drawing method.

    :)
     
    #18     Sep 6, 2013