Channels and trendlines
Now don't you go getting Black Bear all tied up in knots. He swears by my trendline idea and I use it all the time I have a trade open because it helps me keep on the right side of the trade.
When I said that it was not important, I meant that it could be drawn just as the trader wants, so that it suits him as a warning line--just like you said--- but that I did not think that it was important for much else, that is, I DID not think that it had any significance in TA, otherwise. In other words, you can draw it anywhere you liked, as long as you were happy at the profit that you would make if you closed when it was pierced.
So, I said DID. That means that using a line of best fit, which I think is another name for linear regression, with a channel, which is what you use, I think, certainly has made my old brain box think again. Well, I don't want to think about it for too long, so I am going to try it.
What is your opinion, Andy?
A lot of what you have said, mp, has helped me this week. Either that, or any idiot could have made money this week! I prefer to believe the former,
1) Because I am grateful for your advice and
2) I ain't no idiot.
Regards Split
Hi Split
Your no idiot = you posted the trendline post at an idiot =thanks
I am just a simple bear who likes a share of the Honey, never want the whole pot, just enough for my maple pancake will do
I mark them off in all the higher timeframes
Mine are just the standard month week day for the Big picture, just so I now where we are each day and if the Bear needs to be careful and not get caught up in a large price whip which might take place around some major R & S point. (mark manual ones off as per td thread and ftse beater threads/ articles etc)
Close Stops are useless around these locations imho, I pass on the trade myself, and wait till I judge price as made its mind up on direction.
Mps advice is sound imho on this one I think If I have understood him correctly :?:
Go Flat and wait for your own timeframe signal after the larger timeframe as made its or their mind up
Do not do the pairs at all (Ftse only) and find the 4 hr tf chart to close to the day tf chart on the ftse so do not bother with it anymore.
Intra day I mark channels if I see them, the main use I put them to is spotting continuation of trend breaks in the lower tf once a move as got under way in the higher timeframe (hours) (looking to enter at best price in a move thats contra to the higher timeframe judged trend (Hours)) channels do show this up well imho so I use them
Hours just use your trendlines Split and manual S & R, will mark a channel if I see it, note pdh pdl pdc pwh pwl pmh pml.
Thats a bit of a list for a Bear on a shopping trip anyway
Must say Split I do prefer your posted answer and interpretation of their use, you are not in danger of marrying it, EVER if you read it and adopt that position between your ear holes imho
No grey areas at all = they are just a useful tool to keep you the right side and prompt you something may be required of you. Their use is obvious and will keep you the right side if marked on the higher timeframes, will help keep you in a move perhaps when your emotions may be surfacing and you are about to act prematurely and close out for a profit that may grow larger for little or no extra risk
All I would say is if you think you have a channel marked ~ trade it with the trend only, why risk the drawdown by being greedy and trading it both ways. I understand if your channel is on the weeks timeframe and you are well in the money you may wish to hedge in the days 1/2 way across the presumed channel to protect your gains.
Thats way over this bears head Split, sure to end up with both my paws stuck in the Honey pot and end up with nothing at all if I tried it
Serious, I have read its pretty hard to make money on the hedge trades etc, never really bothered looking into it to be honest so can not comment.
Must be this bears head of mine, just seems quite a lot to expect ..........
Profit on the hedge to, You just close the hedge and
off it goes again cutting into your main trades potencial profit. Just hurts my head if I am honest Split. I am sure those who are good position traders do it in their sleep, they would have to if they trade the pairs 24/7
Enter at the extreme of the channel when price appears to be confirming its validity, perhaps by a day bar backing off at edge of channel Zone then followed by conformation the next session by its low or high getting taken out. Trade with trend only. Might have to wait about a bit but if the trade works out it will be a stand out trade in the timeframes mentioned (day 240 min) and ample opportunities to add imho
Looked at the channels that calculate themselves and
will stick to a rule if thats ok with you Split
A long time ago I came back one day and my Raff or Riff channel, think thats what its called:?: had changed trend and tilted a full 90 degrees
Was not a happy Bear that day I can tell you, and don"t they just keep growing to accommodate price which seems a little strange to me :?:
Have a good weekend Split and good luck with it :clover:
oh yes ..errrrr what does the red bit mean Split that I have highlighted, just always wonder if I have understood it correct being a daft Bear
and again, one more time
Trend lines, to me, are drawn arbitrarily. I just use them as a sort of "comfort line". If I am on the right side of it I feel fine and have no worries. The rule that they must be drawn across the tops or bottom is, more or less, telling the market what to do. How can you expect that of a price? When the price cuts the trend I look to see if a pattern is forming. If the pattern is continuous, I revert to a trend line, again, almost certainly, the momentum will have changed but if I keep to the right of it in a bear and to the left of it in a bull then I am OK- Whenever it crosses, it is a warning to pay attention to the trade, nothing more.
There is nothing to be learned from trend lines, IMO anyway, except to help keep the ship on course. Go inside it and you are entering into shallow water.
Watch the trend line but remember that deep sea men don't like shallow water. Neither do coastal men like deep water.
BY
Split
