Consistent profits using Trendlines

[veekay304]

I like the way you plot trendlines,can u share some basic steps of plotting effective trendlines:thumb:

identify two visual pivots and simply join them.. you a trend line..

1. for uptrend, use Higher lows of visual pivots - means connect the Pivot lows. See chart below


2. For downtrend, use lower highs of visual pivots - means connect the pivot highs

VK

 

[shanki99]

Eventhough the range for several days is small, our system seldom fails :clap:

Here today, it gave 2 signals, first one gave exact 20 pts and the 2nd one gave 40 pts

Hip Hip Hurrah.... TLs the best ever....practice practice...will master it over a period of time :thumb:

 

[shanki99]

Iam totally disappointed by the way i traded today. I fumble when price moves in a single direction. Bcos after some time, i start looking for reversal of trend and in that process,
i miss opportunities in continuation of trend.

That exactly happened today. My many trades were Longs. So naturally i ended up in Loss.

And also, my experiment with Order book, really took me down in couple of trades today.

The lesson is -- just stick on to ur tried tested method. TLs gave couple of good short trades today and alas, i was looking and trading for Longs... ridiculous

Still TLs looked the best today, for those who saw it on time with right vision....and am not in that list today.

 

[aditya14]

how do u draw them realtime? amibroker?

 

[shanki99]

how do u draw them realtime? amibroker?

yeah realtime in amibroker, by selecting the tool for drawing TL....what is the difficulty u face?

 

[rebeck10]

we draw trenlines by connecting days highest high and lowest low,but in your trades you some take other candles and connect to form a trendline,which is correct,how do you identify those candles

 

[shanki99]

we draw trenlines by connecting days highest high and lowest low,but in your trades you some take other candles and connect to form a trendline,which is correct,how do you identify those candles

I cannot foresee any candle. Instead i wait for some time for a clear peak or trough to get formed and then draw TL based that.

Just have a look at the first pic. This is for the date 08Jan. I have drawn just 2 lines.
Line A is a temporary TL. Bcos price did not make any new low. There is a possibility that price may trade within a channel denoted by the dotted line on the upper side and bottom by Line B. So we do not know at that time.

Then look at Pic 2. The earlier intermediate high is taken as resistance and price came down from that point. So based on that we can draw TL-C.
At C1, price touched and obeyed TL-C and came down all the way to the day's low. At that time, we know that if price does not break the day's low, but, instead comes back to break the TL-C, then there is a chance that it wud be a valid signal.

Look at Pic 3, price has broken the TL-C and formed a new intermediate high. When price takes a breathing and comes back down, we can draw a TL which is denoted as D.

Pic4, Look how TL-D influences price at point D1. We do not know whether price is going to come down or break TL-D.

Pic5, after touching the point D1, price traveled south and made a clear trough at point E1, through which we can draw TL-E.
At point E2, there is clear close below the TL-E, but the next candle never breaches the low of the candle which closed below the TL. Hence no trade there.

And finally in Pic6, we have re-drawn the TL-E and TL-B after taking into account the latest price action at points E2 and B1.

Hope this helps

http://img16.imageshack.us/img16/2482/banky08janpic1.png

http://img199.imageshack.us/img199/4884/banky08janpic2.png

http://img17.imageshack.us/img17/9094/banky08janpic3.png

http://img686.imageshack.us/img686/3548/banky08janpic4.png

http://img707.imageshack.us/img707/3436/banky08janpic5.png

http://img121.imageshack.us/img121/229/banky08janpic6.png

 

[shanki99]

Today my vision was better. Just couple of trades but day was good to trade.

As usual both the trades were success. If i had traded multiple lots, it wud have been a lot better. After a loss making (y'day), i did not have mind to go in for multiple lots today.

Trades of today

 

[aditya14]

yeah realtime in amibroker, by selecting the tool for drawing TL....what is the difficulty u face?

how to get data into amibroker lol
iam using TTAdvance

 

[shanki99]

how to get data into amibroker lol
iam using TTAdvance

I dont have any idea abt TTadvance.....probably u can subscribe to MDP for getting RT data into Ami