Trendline Trader Vic method

Discussion in 'Technical Analysis' started by nihar15, May 12, 2005.

  1. nihar15

    nihar15 New Member

    Joined:
    Apr 12, 2005
    Messages:
    25
    Likes Received:
    0
    Trophy Points:
    1
    Hello,

    I am currently reading the "Trader Vic--Methods of a Wall Street Master" His method of drawing the trendline is pretty interesting but I have a some questions regarding it.

    For an uptrend he says identify the two points,
    1) Lowest low
    2) Low before the highest high and
    3) join them such that the line does not interesect any other point on the graph.

    Now what if this is not possible? I mean he stresses on not having the line intersect any points. What if it is possible to draw a line such that it does not intersect any points but violates the second condition or maybe the first condition? Also, if all three conditions cannot be fulfilled simultaneously, how to draw the trendline?

    In the attached graph of Balmer Lawri
    Black line satisfies 1 & 3 but not 2
    Red line satisfies 1 & 2 but not 3

    Are there any other methods for drawing trendlines?

    Thanks
    Nihar Desai
     

    Attached Files:

  2. sh50

    sh50 Active Member

    Joined:
    Mar 15, 2004
    Messages:
    690
    Likes Received:
    33
    Trophy Points:
    28
    The third point is news to me. I have read in books that you can draw through three straight points to make it a valid trendline. One should go by grosss approximations instead of being precise; it is better to be vaguely right than to be exactly wrong.
     
  3. geeaar

    geeaar New Member

    Joined:
    Apr 26, 2005
    Messages:
    22
    Likes Received:
    1
    Trophy Points:
    3
    Dear Nahar15,
    I saw the graph of yours in my perception i feel the black one is the correct line as i see the low is around 180 which is a major low before the highest high.
     
  4. Neal

    Neal Member

    Joined:
    Mar 10, 2004
    Messages:
    205
    Likes Received:
    5
    Trophy Points:
    18
  5. nihar15

    nihar15 New Member

    Joined:
    Apr 12, 2005
    Messages:
    25
    Likes Received:
    0
    Trophy Points:
    1
    Hello all,

    Thank you for replying to my post. Neal, the post on "Identifying trends with trend lines" by TATrader is the same Trader Vic approach. Infact this was the reason why I asked this question on the forum. I believe Traderji and TATrader have studied this book since they have both mentioned it in their posts some time. I would be obliged to to hear comments from them.

    Again, thank you all for your comments
    Nihar
     
  6. bkbami

    bkbami New Member

    Joined:
    Apr 29, 2005
    Messages:
    4
    Likes Received:
    0
    Trophy Points:
    1
    Thank you all for this new info


    Thnx
     

  7. sudoku1

    sudoku1 Well-Known Member

    Joined:
    Oct 23, 2007
    Messages:
    10,898
    Likes Received:
    17,351
    Trophy Points:
    113
    http://www.amazon.com/Trader-Vic-Methods-Street-Master/dp/0471304972
     
Loading...

Share This Page