Lord Flasheart
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Hi, what is the consensus regarding how to draw trend lines?? should I draw them passing by the extremes or the closing point of the candlesticks??
at the start of and on my thread there are many examples of the trandlines i use to trade.It can be either.Eyesight and feel for whats right is my best judge.I prefer trandline pullbacks,they are more certain
cup243
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What is a trendline pullback???
I basically get in immediatly when the price touches a trend line (from ANY two tops or bottoms), betting on it bouncing back, with a risk reward ratio of 1:4 (risking one to make four).
The thing is, I don't know if I should enter when the price touches the first or second line (considering the first line the one that goes trough the closing point of the candlesticks at the previous top or bottom).
Shakone
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A trendline pullback usually means that there was a trendline in place, price broke out of this trendline, and you wait for it to pullback to the trendline it has broken from.
I don't use trendlines as a place for entry, so a rough line would do equally well for me. However, unless you have the experience of Flasheart with these to make a judgement on best place, I'd suggest you go with the least subjective way of drawing them. And in that spirit, I'd suggest using the highs and lows rather than drawing it to the opens and closes, which change significantly based on the timeframe you're looking at.
I don't use trendlines as a place for entry, so a rough line would do equally well for me. However, unless you have the experience of Flasheart with these to make a judgement on best place, I'd suggest you go with the least subjective way of drawing them. And in that spirit, I'd suggest using the highs and lows rather than drawing it to the opens and closes, which change significantly based on the timeframe you're looking at.
