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Thanks Seagull, sorry for the delayed response, been packing for...

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09/04/17

11:26

Post #: 23958603
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Originally posted by seagull ↑

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.
View attachment 540048

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Thanks Seagull, sorry for the delayed response, been packing for Overland track in Tassie, off on an adventure
Thanks for your insight into trend line placement, appreciate it, there's no denying trend lines play a large part in price action. I can see how these trend angles repeat and form channels, I have noticed these previously but never successfully developed a trading plan using them. The problem I had with them was once I'd marked them out I struggled know what any of it meant or why they reacted the way they do. I think reaction line is probably a good way to describe them as they do appear to create a reaction of some kind but not quite in the same way as horizontal support and resistance, price often breaks through them and even follows them above and below but due to their dynamic nature, if price were to follow them completely, infinity would be the ultimate outcome. A nice thought, and one the rampers take advantage of, but shows the obvious weakness of reliability as price becomes overextended. Trend lines do definately have a place inside price structure, however I think the missing pieces for me were some understanding of accumulation and distribution as these appear to me to be the cause of the price trending and the reasons for price being overextended in a trend can be found in the building of the cause, if you only put in $10 petrol your not going interstate.
I guess the question I was asking was if you find some starting points more reliable than others, and the more I think about it, i come to the opinion of, if it looks good to me, and I get a little ocd about line placement, it must look good to others watching as well, I'd just like to be across any "expert" understandings that I may be missing, and I'm sure there's plenty based on the number of "experts" lol.
Cheers Seagull and thanks for sharing your strategies
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