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
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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