[Enigmatics]

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.

[clmacdougall]

How are you drawing your trendlines now? Please explain how you construct your trendlines and then maybe others can help.

[Enigmatics]

Originally Posted by clmacdougall »

How are you drawing your trendlines now? Please explain how you construct your trendlines and then maybe others can help.

Sure thing. I'm always up early for pre-market. I trade a lot of SPXU and FAS. I make sure to mark a horizontal line for every resistance or support they make. Here are two examples on a 2min chart of the trading channels I missed today. For the trend lines I look for two common points in a straight line of the channel on the top and on the bottom. Drawing them afterwards it feels like it was a no-brainer so I don't know what I was thinking at as they took place.

Again I've marked these where I felt like I missed the obvious, but maybe there's more to it.

SPXU


FAS (EDIT: I wrote SHORT ON SUPPORT, but I meant SHORT ON RESISTANCE)

[Tams]

Originally Posted by Enigmatics »

Sure thing. I'm always up early for pre-market. I trade a lot of SPXU and FAS. I make sure to mark a horizontal line for every resistance or support they make. Here are two examples on a 2min chart of the trading channels I missed today. For the trend lines I look for two common points in a straight line of the channel on the top and on the bottom. Drawing them afterwards it feels like it was a no-brainer so I don't know what I was thinking at as they took place.

Again I've marked these where I felt like I missed the obvious, but maybe there's more to it.

SPXU


FAS (EDIT: I wrote SHORT ON SUPPORT, but I meant SHORT ON RESISTANCE)

those lines are draw in hindsight... not much use in real time trading.

[Enigmatics]

Originally Posted by Tams »

those lines are draw in hindsight... not much use in real time trading.

That's precisely why I'm asking. So do you not use them at all? I just want to find a way to get more comfortable buying dips. I figured better trendlines would help me.

[clmacdougall]

Originally Posted by Enigmatics »

Sure thing. I'm always up early for pre-market. I trade a lot of SPXU and FAS. I make sure to mark a horizontal line for every resistance or support they make. Here are two examples on a 2min chart of the trading channels I missed today. For the trend lines I look for two common points in a straight line of the channel on the top and on the bottom. Drawing them afterwards it feels like it was a no-brainer so I don't know what I was thinking at as they took place.

Again I've marked these where I felt like I missed the obvious, but maybe there's more to it.

SPXU


FAS (EDIT: I wrote SHORT ON SUPPORT, but I meant SHORT ON RESISTANCE)

Hi Enigmatics,

Could I clear up one thing before we go ahead. Are you confused about trendlines or channels. They are two totally seperate things and I'm not sure we're on the same page when you mention the placement of your trendlines'.

You have shown pics of channels and what you consider support and resistance lines but none of trendlines . Please include how you incorporate a trendline in this scenario. I wonder if part of the problem is that you are using your channels as trendlines.

[Tams]

more detail here:
http://www.traderslaboratory.com/for...ationship.html

[Tams]

more detail here:
http://www.traderslaboratory.com/for...ationship.html