Trendline Change

Traderji

Traderji

Super Moderator
#22
#22
Excellent thread! keep it up!!

I consider the trendline analysis as THE MOST IMPORTANT TOOL for a technical trader because technical analysis is built on the assumption that prices trend.

To be a successful trader, you have to use a method that gives you a statistical edge. This edge comes from the tendency of prices to trend. In the long term you can make money only by trading in synch with these trends. Thus, when prices are trending up, you should only buy. When prices are trending down, you should only sell.

So using trendline analysis one can easily identify the trend! The trend can either be up, down or sideways as illustrated by the many examples in this thread.

When you trade in the direction of a trend, you are truly following the markets rather than predicting them. Keep in mind that most unsuccessful traders spend their entire careers looking for better ways to predict the markets.

You can brush up on your trendline analysis with this short tutorial at http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:trend_lines

Keep posting your charts with your analysis. Interacting and discussing your views on trendline analysis is one great way to learn!
 
L

Luckytrader

Member
#23
#23
Traderji said:
Excellent thread! keep it up!!

I consider the trendline analysis as THE MOST IMPORTANT TOOL for a technical trader because technical analysis is built on the assumption that prices trend.

To be a successful trader, you have to use a method that gives you a statistical edge. This edge comes from the tendency of prices to trend. In the long term you can make money only by trading in synch with these trends. Thus, when prices are trending up, you should only buy. When prices are trending down, you should only sell.

So using trendline analysis one can easily identify the trend! The trend can either be up, down or sideways as illustrated by the many examples in this thread.

When you trade in the direction of a trend, you are truly following the markets rather than predicting them. Keep in mind that most unsuccessful traders spend their entire careers looking for better ways to predict the markets.

You can brush up on your trendline analysis with this short tutorial at http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:trend_lines

Keep posting your charts with your analysis. Interacting and discussing your views on trendline analysis is one great way to learn!
Click to expand...
Thanks Sir for appreciating this one.

And also thanks for sharing the link.

Regards,
Luckytrader.
 
jamit_05

jamit_05

Well-Known Member
#27
#27
Your analysis is quite logical. Only after a break of resistance, preferably other stocks of similar sector do the same, we look for entry at a pull back. However, instead of using the trendline we ought to use a fib retracement for entry. Since, it is more predictive and allows good risk management.

If this be applied to hourly or daily charts it works wonders.

Gr8 job luckytrader. Thats what a forum needs, a simple and a successful analysis like yours.

Amit.

Luckytrader said:
A trend Change can be in any direction up, down or sideways.
That is why, I prefer breakout from its resistance level to confirm an upward trend.Then, I use macd indicator which gives me a general view of demand & supply.

Thanks & Regards,
Click to expand...
 
S

sandeep721

Member
#29
#29
Dear Lucky

I have been trying to learn Technical analysis and I found your analysis on trendlines very helpful indeed. Thanks and keep up the good work

Sandeep
 
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