I've always wrestled with trendline adjustments in similar situations where:
1. We have clear lower highs (or higher lows) 2. Then we get an equal/slightly higher high/low that breaks the trendline
3. Then that's followed by price action resuming the initial indicated move lower/higher
Question becomes how do we consistently know when to adjust the initial trendline off the high/low starting point to account for the price action break? 10/14/15
i leave the trendline where it is, as its based on past history. the important thing to look at is whether price reverts back down below the trendline....in which case its a false move. secondly, do the indicators make a higher high or a lower high with the break. in this case no higher high, so agin it supports the case for a false move...to run the short stops before the real move gets underway. 10/14/15
007Dad
