What is the rationale behind trendlines?

Discussion in 'Technical Analysis' started by CyJackX, Sep 9, 2016.

  1. 1) definition of ceiling/floor = wherever price stops and forms lines ..horizontal or diagonal

    2) Single spike up or down is ceiling or floor? Yes each bar contains support and resistence.

    3) two bars..three..bars To draw a line thru? Yes, you can if that is where price is stopping at.

    4) what defines contour? Price stopping points. Nothing else.

    5) support and resistance assume counter forces in play? It can be counter forces but it can just be lack of lack of demand as opposed to say selling pressure overcoming buying pressure at resistance or could be both are equal and nothing happens until some decides something. Selling/buying pressures can correlated to $$ pumped in a price levels and that equals vol. volume IS $$$

    6) is it too optimistic to assume all reversal are because of forces in play? Probally. Sometimes it is simply a lack of forces to push price up or drive price down. We see more aggresive forces at play in momentum surges and b.o.'s.

    7) exhaustion in buying selling can they be called areas of support/resistance? Yes. Anytime price stops for whatever reason then there is resistance and/or support in play. They can be there for various reason including increased demand..lack of demand..increased selling ..lack of selling. No selling..no buying..no supply..no demand..etc..ad nauseum.

    8) all lines hold until they don't hold. ALL patterns ..wedges...sideways ranges...trendlines...head an shoulders..triangles..flags...EVERY SINGLE PATTERN IN THE BOOK exists because of buying/selling pressures. That is, in fact, what makes them form. Furthermore, EVERY SINGLE BAR has inherent within it buying selling pressures. Buying selling/pressures = support/resistance. Every bar is either a range bar or a trend bar. This is true for bars in any time frame.
     
    #61     Sep 14, 2016
  2. qxr1011

    qxr1011

    Very well.

    Thanks for responding.
     
    #62     Sep 15, 2016