View: slopechart_XLP.jpg

slopechart_XLP.jpg

A little study on trendlines. I set it up on this @$50 stock with the notion of entering short on the second touch of a bearish trendline with the intention of either making or losing $100 (100 lot). The results are inconclusive. 5 winners and 4 losers with 1 negated when price gapped up over the trendline. My conclusion is that entering a trade based solely on trendline second touches is reckless. However in conjunction with other factors, such as horizontal support/resistance lines and candlestick patterns it is worth consideration.

Image added via SlopeCharts
slopechart_XLP.jpg

Comments

stopar1stopar1
10/25/18
MississippiManMississippiMan
I started all that line art to show how a trendline develops. If you keep moving a trendline after just having a starting point and a first touch it really isn't a trendline. It's more of a level of ebullience in a bull market or desperation in a bear market at that particular moment in time, like in the financial crash 10 years ago. 10/25/18
stopar1stopar1
 
 
I think the trend lines are just stretched dots of connected ticks - individual blips of human emotion printed in black and white doji (I) walking electrolytic sacks~~~~ wave receivers~~~~ some waves print through time. 
Beautiful moon again tonight
10/25/18
...