Not much more pain for the FTSE ?

[mikeball87]

so, after exiting most of my long positions in stocks and not going short, i'm wondering, is this short down trend nearly over? in my opinion, not quite..

as you see below the chart i made would seem to be near bottom, but with all the bad data and poor earnings out whats next for the FTSE?


imagen

I would hope to be adding new long positions soon, my horizon is around 2 more weeks of mixed markets and mixed earnings before the bulls come back in. and with the china data not quite flourishing as it once did? are the cracks starting to show once again??

 

[Triggerfish]

Why draw two parallel lines in that way or at that angle?.....am sure there are other possibilities. So your theory is based on those two lines.....so what makes you think that those two lines are drawn correctly?.....What about other or many other infinite possibilities?

Furthermore, what makes you think it will touch the bottom line before it will rise upwards because the chart shows CLEARLY on two occasions before, it did not touch the bottom line before rising!!

In fact, why draw lines at all?

 

[Sh8rk3y]

Why draw two parallel lines in that way or at that angle?.....am sure there are other possibilities. So your theory is based on those two lines.....so what makes you think that those two lines are drawn correctly?.....What about other or many other infinite possibilities?

Furthermore, what makes you think it will touch the bottom line before it will rise upwards because the chart shows CLEARLY on two occasions before, it did not touch the bottom line before rising!!

In fact, why draw lines at all?

The trend lines seem to be correctly drawn IMO. Quite hard to see from the .gif admittedly…

Trend lines and trend channel lines are among the most reliable forms of support and resistance there are! Very high probability we get a bull move if the price prints some kind of reversal pattern (e.g. double bottom) at or around this line. That's why one should draw them IMHO.

 

[mikeball87]

Why draw two parallel lines in that way or at that angle?.....am sure there are other possibilities. So your theory is based on those two lines.....so what makes you think that those two lines are drawn correctly?.....What about other or many other infinite possibilities?

Furthermore, what makes you think it will touch the bottom line before it will rise upwards because the chart shows CLEARLY on two occasions before, it did not touch the bottom line before rising!!

In fact, why draw lines at all?

im not saying it will touch im just saying its looking close to its end.. and those lines are obviously trend lines..

and for " What about other or many other infinite possibilities?" you could load countless indicators but the fact is the price is key, for every buy indicator there will be one showing sell.

 

[mikeball87]

The trend lines seem to be correctly drawn IMO. Quite hard to see from the .gif admittedly…

Trend lines and trend channel lines are among the most reliable forms of support and resistance there are! Very high probability we get a bull move if the price prints some kind of reversal pattern (e.g. double bottom) at or around this line. That's why one should draw them IMHO.

exactly, the probability of a bull move is higher than a bear move.. that is what the lines show... and also they are on a daily chart.. the guy above sounds like hes been trading on 5sec charts and saying "What about other or many other infinite possibilities?" many indicators are just complete randomness.. simple charts will always give you a more clear idea of what you want