Strength Of Trendlines

#1
Hi,

Can a pro who has been using trendlines tell me of their experience when usually they are broken or when best to buy or sell off a bounce or when they break? After trading for 1 year I find it breaks usually on the 4th or 5th bounce more on the 5th bounce break and the odd occasion 3rd while the 2nd bounce is the strongest.

Thanks.
 
#2
Hi,

I'm not a pro. Just a newbie.
I like using TLs as they are simple and robust. I don't see any rule set in stone as to which bounce is success or fail. When they fail - it just failed that's all.

"when usually they are broken or when best to buy or sell off a bounce or when they break"

When price approaches TLs, see the candle formation - it indicates something about the sentiment at that point of time. Who's in control?

Price doesn't see any TLs. Whether a price level will hold or break directly depends upon the orders at that level - doesn't matter if it's horizontal level (S&R) OR a diagonal price level (TL).

hope this helps

Happy new Year 2012
 

Similar threads