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Old 09-22-2011, 10:36 PM   #9

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Re: A Few Questions About Trading the Trendlines



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Old 09-22-2011, 11:43 PM   #10

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Re: A Few Questions About Trading the Trendlines

Awesome stuff there Tams!
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Old 09-24-2011, 02:23 PM   #11

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Re: A Few Questions About Trading the Trendlines

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I've recently been trying to tighten up my ability to draw the right trend lines, horizontal lines, and identifying trade channels.

Do you guys have any specific pointers that could help? Furthermore, how reliable are trend lines on smaller time intervals like a 2min?

I was having a bit of success pairing 2min charts with 5min and trading breaks on ETF's of prior resistance levels. I've suddenly hit a brick wall. I have been a little too focused on 2min (kind of ignoring the 5min) and trying to attack every horizontal resistance level I marked with very little distinction. Suffice to say I've suddenly been very unsuccessful. I feel like my little run with scalping 8-10 ticks was fool's gold.

The reason I bring up the issue with the horizontal resistances is that I rarely (if ever) have bought the dip and I want to be able to with confidence instead of constantly relying on breaking of resistances. This becomes harder and harder to do if the volume dries up as the trading day moves on and the algos run amuck.

Hi Enigmatics,

I use the Metatrader 4 platform to trade ForEx and I have great experiences using Tom DeMark Trend lines. DeMark uses the two most recent (Fractal) Highs and Lows to draw them. Next to that there are some "qualifiers" that tell you whether a trend line break is valid for trading or not.

If you Google "Tom DeMark Trendlines" there is plenty to learn about it. Here's a PDF to read some more on the subject.

Happy Trading!

Cheers,

Peter a.k.a. Dutchie
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Old 09-24-2011, 04:27 PM   #12

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Re: A Few Questions About Trading the Trendlines

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Originally Posted by Dutchie »
Hi Enigmatics,

I use the Metatrader 4 platform to trade ForEx and I have great experiences using Tom DeMark Trend lines. DeMark uses the two most recent (Fractal) Highs and Lows to draw them. Next to that there are some "qualifiers" that tell you whether a trend line break is valid for trading or not.

If you Google "Tom DeMark Trendlines" there is plenty to learn about it. Here's a PDF to read some more on the subject.

Happy Trading!

Cheers,

Peter a.k.a. Dutchie
I absolutely love TD Lines, please tell me how extensively you use them and for how long you've found them to be successful? I have studied them in depth and found them to be great trading tools as the last part of your decision making process after you have decided which side of the market to be on.
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Old 09-24-2011, 07:01 PM   #13

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Re: A Few Questions About Trading the Trendlines

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Originally Posted by clmacdougall »
I absolutely love TD Lines, please tell me how extensively you use them and for how long you've found them to be successful? I have studied them in depth and found them to be great trading tools as the last part of your decision making process after you have decided which side of the market to be on.
Hi,

I always use them, together with my (customized) DTosc, which is a combination of Stoch./RSI. When using proper money management (duhh), they are VERY useful!
IMHO they tend to work better on the 60 min timeframe or higher. There are several TD Trendline indicators circulating the trading forums but I prefer the ones with the qualifiers although they're easy to memorize. If you are familiar with trading differently shaped triangles (my absolute favorite pattern) it's easy to set your profit targets too.

Happy Trading!

Cheers,

Peter

Last edited by Dutchie; 09-24-2011 at 07:11 PM.
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Old 09-24-2011, 11:16 PM   #14

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Re: A Few Questions About Trading the Trendlines

Quote:
Originally Posted by Dutchie »
Here's a PDF to read some more on the subject.
  • Trendline drawing can be very subjective - 10 people, 10 different trendlines
  • Rules may be inconsistent.
  • Need validation that trendline is correct
  • Continue at trend break, or reverse? That's the question.
  • Draw trendlines from Right to Left. Insures using the latest data.
  • 4 different qualifiers to decide what to do.
  • Something about a bar's "TRUE" high or low. Rules, but I don't know what the logic is.
  • 3 Rules for abandoning the trade: Rules apply to the bar after the entry bar.
  • Next bar opens below breakout level - Abandon trade (Long)
  • Next bar opens below the previous close and closes down - Abandon trade (Long)
  • Fails to make higher high - Abandon trade (Long)
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Old 09-25-2011, 05:12 AM   #15

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Re: A Few Questions About Trading the Trendlines

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Originally Posted by Tradewinds »
  • Trendline drawing can be very subjective - 10 people, 10 different trendlines
  • Rules may be inconsistent.
  • Need validation that trendline is correct
  • Continue at trend break, or reverse? That's the question.
  • Draw trendlines from Right to Left. Insures using the latest data.
  • 4 different qualifiers to decide what to do.
  • Something about a bar's "TRUE" high or low. Rules, but I don't know what the logic is.
  • 3 Rules for abandoning the trade: Rules apply to the bar after the entry bar.
  • Next bar opens below breakout level - Abandon trade (Long)
  • Next bar opens below the previous close and closes down - Abandon trade (Long)
  • Fails to make higher high - Abandon trade (Long)
DeMark trendlines AND their qualifiers are NOT subjective if one can read: "If any of the four qualifiers are true, the trendline break is valid" which leave all your other remarks pointless.....

Last edited by Dutchie; 09-25-2011 at 05:23 AM.
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Old 09-25-2011, 05:59 AM   #16

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Re: A Few Questions About Trading the Trendlines

I've read all 3 of Tom Demark's books and Jason Perl's book on Demarks work. I love it and can't wait for his new book to come out next year. He is a well thought through student of the market.
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