Traderji.com - Discussion forum for Stocks Commodities & Forex


Trendline Trader Vic method

Discuss Trendline Trader Vic method at the Technical Analysis within the Traderji.com - Discussion forum for Stocks Commodities & Forex; Hello, I am currently reading the "Trader Vic--Methods of a Wall Street Master" His method ...


Go Back   Traderji.com - Discussion forum for Stocks Commodities & Forex > METHODS & STRATEGIES > Technical Analysis

Technical Analysis Discussion of all the principles involved in technical analysis.


Reply
 
Thread Tools
  #1  
Old 12th May 2005, 08:49 PM
Member
 
Join Date: Apr 2005
Posts: 25
Thanks: 0
Thanked 0 Times in 0 Posts
nihar15 is on a distinguished road
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
Attached Images
File Type: gif BLRMS.gif (40.7 KB, 209 views)



Reply With Quote
Sponsored Links
  #2  
Old 13th May 2005, 07:47 AM
Member
 
Join Date: Mar 2004
Posts: 690
Thanks: 0
Thanked 29 Times in 23 Posts
sh50 will become famous soon enough
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.
Reply With Quote
  #3  
Old 13th May 2005, 08:01 AM
Member
 
Join Date: Apr 2005
Posts: 22
Thanks: 0
Thanked 1 Time in 1 Post
geeaar is on a distinguished road
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.
Reply With Quote
  #4  
Old 13th May 2005, 09:08 AM
Member
 
Join Date: Mar 2004
Posts: 205
Thanks: 0
Thanked 4 Times in 4 Posts
Neal is on a distinguished road
Default Re: Trendline Trader Vic method

I would suggest you to also read Identifying trends with trend lines and Trendline Analysis and Open Interest
Reply With Quote
  #5  
Old 13th May 2005, 10:42 AM
Member
 
Join Date: Apr 2005
Posts: 25
Thanks: 0
Thanked 0 Times in 0 Posts
nihar15 is on a distinguished road
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
Reply With Quote
  #6  
Old 15th May 2005, 09:47 PM
Member
 
Join Date: Apr 2005
Posts: 4
Thanks: 0
Thanked 0 Times in 0 Posts
bkbami is on a distinguished road
Default Re: Trendline Trader Vic method

Thank you all for this new info


Thnx
Reply With Quote
  #7  
Old 29th April 2011, 03:44 PM
sudoku1's Avatar
Member
 
Join Date: Oct 2007
Posts: 8,461
Thanks: 4,775
Thanked 11,868 Times in 4,029 Posts
sudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond repute
sudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond reputesudoku1 has a reputation beyond repute
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


Reply With Quote
Reply

Bookmarks


Advertise Here


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads for: Trendline Trader Vic method
Thread Thread Starter Forum Replies Last Post
38 steps to becoming a trader CreditViolet Words of Wisdom 150 3rd August 2014 03:19 PM
Trendline Analysis and Open Interest MasterTrader Technical Analysis 15 10th April 2013 09:22 AM
Fundamental Flaw of Every Trader andy Words of Wisdom 3 24th July 2005 12:50 AM
A "Holiday"from trading jaideep General Chit Chat 8 8th March 2005 05:27 AM


All times are GMT +5.5. The time now is 02:37 PM.

Indemnity, Disclaimer & Disclosure Notice:
By visiting Traderji.com you automatically indicate that you agree to our Forum Rules, Indemnity, Disclaimer & Disclosure Notice and General Content Disclaimer Notice and indemnify Traderji.com, its associates and related parties of all claims howsoever resulting from the usage of the forum/site.
Disclaimer: Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. You are recommended to make appropriate enquiries and seek appropriate advise before sending money, incurring any expenses, acting on recommendations or entering into any commitment in relation to any advertisement published here. Traderji.com does not vouch for any claims made by the advertisers of products and services. Traderji.com will not be held liable for any consequences in the event such claims are not honoured by the advertisers. Traderji.com will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of any information by anybody mentioned anywhere on this site.
Disclosure: The information in this forum is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.
All names or products mentioned are trademarks or registered trademarks of their respective owners.
General Content Disclaimer Notice:
In light of our policy of encouraging candid, open exchanges of views and the rapid distribution of information originating from many sources, Traderji.com cannot determine the accuracy or legality of any information that may be uploaded to the forum. Opinions, advice and all other information expressed by participants in discussions are those of the author. You rely on such information at your own risk. You are urged to seek professional advice for specific, individual situations and not rely solely on advice or opinions given in the discussions. Since Traderji.com is an open and free discussion forum, any comments made by members of this forum in their posts reflect their own views and not of the owner or administrator of Traderji.com. Thus the owner/administrator indemnify themselves of all claims whatsoever and will not be liable or responsible for any members comments/views in this forum Traderji.com. Although we constantly delete all irrelevant content and/or SPAM, if you should find any objectionable or offensive posts made by members of this forum which you would like to bring to our notice for removal then please Contact Us.
 


Copyright © www.Traderji.com 2001 - , All rights reserved.

Recommended Websites - www.TradersEdgeIndia.com - www.TradingPicks.com - www.MasterOfTrading.com

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245