Strength Of Trendlines

 

Can a pro who has been using trendline’s tell me of their experience when usually they are broken or when best to buy or sell off a bounce or when they break? After trading for 1 year I find it breaks usually on the 4th or 5th bounce more on the 5th bounce break and the odd occasion 3rd while the 2nd bounce is the strongest.

 

That is called a double or triple bottom or top

After that it usually either retreats or breaks the support or resistance

 

Nbtrading is right the simple double or triple top/bottom dhuold do

 

Trendlines can be a very good tool for trading. Some people use them very profitable and the way you are identifying the best probability to get a real breakout is very good. Dont mind what they call it, what really matters is that you identified a pattern that repeats itself, you can call it whatever you want as long as it is working for you.

 

Trend lines, news, horizontal lines, any indicators they are all helpful in trading but you have to decide how to use them. Several factors combine to form a trading system. You need to use any or all of them wisely and experience based.

 

Maybe this pic helps which break through is strong and which is weak (possible fake break out).

Your experienced bounce numbers remind me on Elliot Waves. NTL, you have to look for more S&R to break. The experience shows which TL and S&R is important.

Files:
tl_break.gif  24 kb
 

Also you can look up Swing trading.

 
krelian99:
Maybe this pic helps which break through is strong and which is weak (possible fake break out).

Your experienced bounce numbers remind me on Elliot Waves. NTL, you have to look for more S&R to break. The experience shows which TL and S&R is important.

Nice pots. Thanks

Reason: