[eurotrader]

I've been having a closer look at the drawing of trendlines of late and, Trader Vic aside, would like to canvas others opinions on how they would draw a trendline in the following scenario. Market is an uptrend from a prior swing low and has finished retracing to form a higher swing low. However, the second swing low is composed of 2 or more bars all with the same low (effectively a double/triple/etc. bottom). Drawing your trendline up from the first swing low, which of these bars with the same lows would you choose as the second point in your trendline? What if the origin of the trendline has two or more bars with equal lows, which would you choose as the origin? Would you go from the first to set the swing low to the one that started the next up-move? You can see the variables. It may seem like a silly question but it can affect effect your trendline substantially depending on the distance between the two swings? I''m sure there is no correct answer to this question, like so many things in trading, but it will be interesting to see how other traders approach this scenario. Cheers.

[clmacdougall]

You can find all the answers you are looking for concerning trendlines in Thomas Demark's book, "The New Science of Technical Analysis," it will really change the way you understand trendlines and I'm sure it will be profitable for you.

[zdo]

eurotrader,
Please post a screenshot
Thx.
zdo (and Tams )

[eurotrader]

Thanks clmacdougall. Went back and pulled out my book on DeMark's indicators and had a good read back over the section on TD Lines. I'd completely forgotten about them. Programmed them into Investor/RT and can definitely say it has been a big help in eliminating the guess work of which points to use. Cheers!

[Mr_black]

To draw Trend Line you must have a confirmed TREND... (Point2 taken out)...Here is some confirmed Tl's......

[clmacdougall]

Originally Posted by eurotrader »

Thanks clmacdougall. Went back and pulled out my book on DeMark's indicators and had a good read back over the section on TD Lines. I'd completely forgotten about them. Programmed them into Investor/RT and can definitely say it has been a big help in eliminating the guess work of which points to use. Cheers!

On a bit of a sidenote, I found it really important to understand that the break of a trendline was really nothing more than either a slowing of price momentum or a slight change in support or resistance, it has a very limited predictive ability concerning the degree of change which "might" follow it being broken IMHO.
With all that said Mr. Demarks TD line stuff is the most thorough out there concerning trendlines. At least that I've come across.

[eurotrader]

Originally Posted by clmacdougall »

On a bit of a sidenote, I found it really important to understand that the break of a trendline was really nothing more than either a slowing of price momentum or a slight change in support or resistance, it has a very limited predictive ability concerning the degree of change which "might" follow it being broken IMHO.
With all that said Mr. Demarks TD line stuff is the most thorough out there concerning trendlines. At least that I've come across.

Yes, I agree with you here and have found the same with regards to breaks of trendlines. In fact don't trade breaks of trendlines at all. I also don't use DeMark's trade setups using TD Lines as looking back over time they don't seem to be overly reliable. However, I do find the TD Lines to be of value for staying on the right side of trend and monitoring changing momentum. They also help solve the issue of swing points defined by multiple bars with identical highs/lows.

[eurotrader]

Originally Posted by Mr_black »

To draw Trend Line you must have a confirmed TREND... (Point2 taken out)...Here is some confirmed Tl's......

Yes, that's fairly basic and understood. The crux of the issue is dealing with swing high/lows consisting of multiple consecutive bars all with identical prices for the high/low.