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If a line serves a useful purpose like showing a target or helps assessing the market bias then it is certainly not a random element in your arsenal. Why not thinking about it as an element that may contribute to your success. My opinion about trendlines have changed quite a bit over the past months for the better.
Here is my take regarding the nasdaq. The market bias is up until proven wrong, ie, a break of the ascending trendline to the downside occurs.
I agree. I believe that if you put some random lines on your chart and traded nothing but that you would make money. Problem is as humans we just can't do that.
Trendlines, S/R, and any other item on a chart can serve a purpose. Even the vaulted VWAP. There are some lines that are more or less random then others (pivots vs fibs, etc.)
When I worked in the semiconductor industry there was a saying "Stay as close to the wafer as possible". This meant you wanted a job that was directly related to the production of the chip, everything past that was fair game to job cuts. In trading I want to "Stay as close to price as possible". Closer to the price and closer to the present the better. Everything has a place somewhere, moving avg's, channels, VWAP, etc.
Pretty double bottom on the 38.2% retracement. Indeed, on the intraday chart of the 6th, you will see another very pretty intraday double bottom right off the 4089 level. Anyway, there are some additional fibs known only to the freemasons that indicate strong support at 4089 FOR THIS WEEK. However, additional illuminati fibs also paint the 23.6% retracement at 4186 as a key go/no go level for this bounce. As Chris Berman of ESPN likes to say "That's why they play the game..."
Update: Adding chart of the intraday double bottom on the 6th and the bounce so far:
*No correlations are required with the use of these tools ()
I am hoping that your sarcastic emoji means your statement is a joke.
Trendlines, pivots, and any other indicator on the chart is like the waves on a lake. The waves themselves do not move the water but are evidence of the wind's effect on the water. A trendline is evidence of an action being taking on price. Did the trendline cause price to move? No. Are trendlines, pivots, fibs, etc helpful? Sure, as long as they are seen for what they are and treated as such.
Price is much like a lake. It is the flow in and out of that lake that directly moves it. With price it is the flow of money in and out that cause price to move. In the days of the pit you could watch and see the movers and shakers pull and push price up and down all day long. Today we only have the screen with price and a few indicators.
Understanding this has allowed me to understand that any thing I put on my chart will work and it will fail. And now when it fails I am no longer caught off guard. If something works, use it. If it doesn't remove it. Problem we all have is to really know and understand when something stops working and how to move forward with out.
Again black line is that measured move from 2014, bounced around that area. That measured move did not drive price. But gave me an area to watch and see how price reacts off of it.
Bear channel on the hourly, you can see the 4080's appears to be a range bottom and are bought each time we drop into it. 4070 is an area I am watching if that breaks and holds it could be a shift, if not a break of that could be quickly bought into a rally back to the top. I think it may be a bit before we see it again. I believe this week we will be back towards 4200 and test of the top of the channel.
NQ's failure to reach an ATM and now created two lower highs is a bit bearish for me. But I also see this whole thing as a flag or descending triangle. Again you can see that 4070 area, if this range is broken and that break down fails it could be the move we need to see price rally higher.