I feel like I'm getting no where. I've been looking at charts for months, and still cannot draw an upward/downward trend line. Can someone look at this chart and tell me if its correct? chart below: CX 4 weeks - nate
Get a copy of "Methods of a Wall Street Master" by Victor Sperandeo. He has a great section on the proper way to draw a T/L. My advice would be "it ain't rocket science". You want to draw the T/L so you you have a very good idea when the trend has been broken. Coonect the lows on an uptrend and connect the highs on a downtrend. I use T/L's all the time and have found them to be one of the best ways to keep from entering/exting a trade too early. It keeps you from guessing.
nate, I use Candlesticks and draw the Trendline on the "Open" of a "pivot". I don't use the "high or low" of the candle. To me....the Open and Close are a more accurate indication of what is really happening in the Candle. I use "nearby pivots" and "major pivots". On an Up Trend....the line would go on the Open....at the Bottom of the Candle. On a Down Trend....the line would go on the Open....at the Top of the Candle. I will also do something I call...."walking" the Trendline....meaning....I will follow the Candles Up or Down....and move the Trendline....as long as that Candle does not change direction. Other traders may do it differently....but that is how I like to draw Trendlines. Please see attached chart. VSTscalper
Nate, Attached is what I would draw for trendlines. I dont use them very much, except for daily s/r levels. I also threw on some candle formations for ya. They might not meet the "official" definition of some fo the formations, but in an intra-day setting I find that you have a little room. Hope it helps, Nick
Trader273 Would you mind putting s/r lines on also?...I can kinda see where s/r would be, but i'd like to see what you put, because I am probably wrong. also, those lines are ascending/descending channels right?, not really t/l's..but they seem to be the same thing. - nate
Not to get off topic on my own thread lol, but what about: 1. wedges 2. Descending/ Ascending / Symmetrical Triangles are they all drawn off the basic trend line OR are these lines different from a T/L? - nate
Nate, There ya go. I must warn you that I dont use 60 minute charts or trade stocks at all, so take that as you will. I do look for gaps, and there are some in this chat (I only look for gaps from the close of day 1 to the open of day 2) -Nick
Trendlines give you a chance to see some things. They actually are the basis of channels. Your current issues are caused by how two different channels are at play. Your concern about formations is also pertinent to where CW price is moving at this time. As you learn about making money and how to use the tools available you will be going through some moments like those you are now expressing. It is not going to be very apparent to many people the actual effort you are making that leads to a giant breakthrough for you and your future efforts. Lets just put aside the value of looking at CW and lets just focus on the breakthrough on understanding that is coming to pass for you. I'll post two charts. A weekly chart. And a chart that is similar to what you are looking at and that others are using to respond to you. It is a 60 minute chart. I view charts on pairs of screens using software that is very broad and capable of displying what is required to be seen to make a lot of money. I converted them to what ET is capable of transmitting. So we are in a situation where quality is limited. You may find that what I communicate seems insensitive to your specific interests. I am trying to get to where you are and, perhaps show you the signals that are happening in the neighborhood and that you,as yet, are not seeing. This dichotomy is what is rightly creating your wonderment and interest in a rational way on your part.