[Kiwi]

Don't play with them Dinerotrader

Get the book Stikky Stock Charts that Thales recommends. Read it carefully. The apply what it says and see if you can make it work.

I highly recommend the book and guarantee you'll do better with trendlines after you read it.

What is more, its cheap and a fun read.


Stikky Stock Charts
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[DugDug]

dinero - while I agree with Kiwi, I also think that your point is valid about context and " I look at trendlines for pullback setups"....this can give a nice visual for brain muscle memory if you like.
I think they will drive you nuts looking for the perfect way to use them.
As a suggestion, define a way for yourself to draw them, be it visually and free hand, or in a more structured way (TDeMark, Trader Vic), and then be consistent using them as an indicator only, and to give the general vibe....otherwise its just another holy grail chase.

[clmacdougall]

Originally Posted by DugDug »

dinero - while I agree with Kiwi, I also think that your point is valid about context and " I look at trendlines for pullback setups"....this can give a nice visual for brain muscle memory if you like.
I think they will drive you nuts looking for the perfect way to use them.
As a suggestion, define a way for yourself to draw them, be it visually and free hand, or in a more structured way (TDeMark, Trader Vic), and then be consistent using them as an indicator only, and to give the general vibe....otherwise its just another holy grail chase.

DugDug, could you let us know what you personally consider to be a pullback, what is your context for defining one. And once defined whose definition of a trendline do you use for trading that pullback? Thank you.

[DugDug]

I dont have a definition for a pullback, I was quoting Dinero.
I also dont have a strict definition of a trendline.....I draw them freehand that was my point.
Over the years I have found them to be handy to act as a visual tool in order to remind myself of what i am trying to look for in a trade.

The example I have attached is a simplistic but good one ....
6A in a small downtrend, breaks the downside momentum shown by two things, the trend line penetration (any trend line drawn roughly would probably have been broken), and the breakup or the highest highs (set at 25, but any number will do, so long as its consistent).
This reminds me that for me in this instance, the down trend has been broken, a good entry maybe during the pullback toward the trend line, OR if the trend line has been broken, and then uptrend resumes, after a pullback it provides a good time to get on board.
(eg, the first close on a bar in the new uptrend direction, near the P)

If anything I also look for the zones of a pullback to be in the 50-61% of the "trend line break" if you like. Hence I dont particularly like double bottoms.
(this range was approx from 91.00 bottom to 91.60, back down to 91.19)
Nothing that I could attempt to quantify in a programing sense.....more just a visual reminder, of the price action.