Joe Ross
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Hey Joe! Have you ever used a “Close Only Trend Line?”
All major market tops are created when selling pressure over powers buying pressure, breaking the powerful daily diagonal support Close Only Trend Line, and a close below the low of the of the highest weekly price bar. Start the trend line by isolating the lowest weekly close, moving the ruler counter clockwise to connect the next close, preferably an intermediate bottom. The best trend lines will have three or more ranges and closes connected together. When choosing the initial starting point for any support trend line, take the lowest close or lowest low then find how many other closes and ranges can be connected. The more points on a trend line the stronger it is, so long as no more than two consecutive closes are below it. It is okay to have one close violation of the trend line, but choose the trend line that connects the largest number of points. The 200 day moving average is the most important trend line for long term stock traders. Once this is broken with two consecutive closes, or a weekly Friday close below the 200 day trend line, the market is considered to be in serious technical trouble. You can try this concept in any market and in any time frame.
All major market tops are created when selling pressure over powers buying pressure, breaking the powerful daily diagonal support Close Only Trend Line, and a close below the low of the of the highest weekly price bar. Start the trend line by isolating the lowest weekly close, moving the ruler counter clockwise to connect the next close, preferably an intermediate bottom. The best trend lines will have three or more ranges and closes connected together. When choosing the initial starting point for any support trend line, take the lowest close or lowest low then find how many other closes and ranges can be connected. The more points on a trend line the stronger it is, so long as no more than two consecutive closes are below it. It is okay to have one close violation of the trend line, but choose the trend line that connects the largest number of points. The 200 day moving average is the most important trend line for long term stock traders. Once this is broken with two consecutive closes, or a weekly Friday close below the 200 day trend line, the market is considered to be in serious technical trouble. You can try this concept in any market and in any time frame.
