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Trendline Trader Vic method

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Old 12th May 2005, 09:49 PM
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Default Trendline Trader Vic method

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
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Old 13th May 2005, 08:47 AM
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Default Re: Trendline Trader Vic method

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.
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Old 13th May 2005, 09:01 AM
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Default Re: Trendline Trader Vic method

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.
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Old 13th May 2005, 10:08 AM
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Default Re: Trendline Trader Vic method

I would suggest you to also read Identifying trends with trend lines and Trendline Analysis and Open Interest
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Old 13th May 2005, 11:42 AM
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Default Re: Trendline Trader Vic method

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
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Old 15th May 2005, 10:47 PM
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Default Re: Trendline Trader Vic method

Thank you all for this new info


Thnx
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Old 29th April 2011, 04:44 PM
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Default Re: Trendline Trader Vic method

Quote:
Originally Posted by nihar15 View Post
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
http://www.amazon.com/Trader-Vic-Met.../dp/0471304972

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