Wyckoff trading method, page-1692

  1. 16,642 Posts.
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    Yep, the placement of trend lines can be a little tricky at times. And I cringe at times when I see them placed (randomly), and then used for trading.
    You have probably noticed that I mostly use horizontal support and resistance levels, that is because I find them much more reliable and consistent.
    I will use trend lines and channels at times though, but I almost never enter a trade off them alone (they are however a good instrument to use as a measure of overbought'ness or oversold'ness once in a trade, as a guide for selling some or all of a position).

    Yes, trendlines and channels will fit well for a period of time, and then may not frame the price action so well anymore.
    David Weiss uses them a lot, and is never shy to adjust their positioning, to better frame what he sees price doing.
    So if you intend to use trend lines, and channels, keep adjusting them when nessesary, don't just leave them to become stagnant. Use reverse lines if they fit better. And remember it is pure convention, if you skip over pivots too much to 'make' them fit what you want to see (rather than placing them logically, and allowing the chart to speak back to you about what maybe going on).

    Perhaps I could post some examples over the weekend if you would like, if so perhaps remind me.....

    cheers
    Last edited by Jako8557: 06/04/17
 
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