Regarding the placement of trend lines.
If following a stock obviously the earlier you start placing the trend lines the better as they regularly repeat at the same angle.
The attached chart example is one I have been in and traded since its lowest point and the trend lines have pretty much updated themselves since the low in May 2016 and have so far verified to me my placement of the trends.
For what its worth, I like to draw a couple of long term lines for rising and falling trends to reflect what I think of as the different market players playing the game to their own rules.
The reason being is that I think that they have their own targets and consequently that is why we find seemingly unexplained or perhaps not logical places where the sp. finds support or resistance.
I believe that it is more about the regular angle of the trend than the trend itself. This is not my idea by the way but does seem to have a lot of common sense behind the theory much as the Wyckoff method does.
After studying the different trend angles it can be seen that there are usually more than one regular angle or line that has a reaction when the sp. approaches. This is usually reflected in the volume rising or falling depending on the proximity to the line. For example when the sp hits a line I often see higher volume if at support or lower as it nears resistance.
I also draw the horizontal support resistance lines.
It is not an exact science but I think I get them close enough often enough to satisfy my assessment of the situation on most occasions.
So after I draw the initial trend line, I continue that line out to the future. After the high (or low) is established I place a parallel line of that initial trend at the high or low as a future potential reaction line. Basically it is just a trend channel so if the sp. is rising then I place another parallel at the next high and so on until the sp changes direction again. Then I do the same in the opposite direction. As the sp rises (or falls) it can be seen that these parallel lines do in fact very often have an influence and this continues for years in some cases.
It does get messy but the lines can be dulled down until they become relevant the next time.
So, the second trend line I draw is placed if the sp. does not respect the first one. The same method is applied to this one & is extended out & parallel drawn when required.
I know this thread is predominately about Wyckoff methods but I find that I can get a better understanding about what I think the volume is saying if I use trend, support lines, Fibbonach retracements etc. as verification for my interpretation of those methods. ( the truth is I just cant get my head around the Wyckoff methods on its own)
It’s a bit hard to put into words what I think I see on the charts so using multiple methods is how I arrive at my understanding.
The info and explanations we get on this thread have helped me no end and for that I am extremely grateful for Jak064 and all the other posters here.
