Users: DoubleNaughtSpy: slopechart_UBS.jpg

slopechart_UBS.jpg

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slopechart_UBS.jpg

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DoubleNaughtSpyDoubleNaughtSpy
Charting observation/question: 
I like using trend channels (using glorious SlopeCharts of course) and I have noticed that when leaving an up trending channel in place on a chart for a while, many times the lower support line gets broken to the downside. Instead of plunging into the abyss, however, it seems more times than not that the channel just needs to be “adjusted”. I realize there is less “contact” with the lower line after adjustment, but the channel still contains the upward move and the price moves up again. I also know @TimKnight really places a lot of faith in these trend line breaks, so I am always nervous when straying from anything he does charting-wise. Has anyone else noticed this type of trend flattening move? If so, have you been able to monetize it? I also use MACD and RSI along with the channel to better time my entry and exit. So far, I have had decent results, but am always looking to improve. 3/20/18
Mr. WizardMr. Wizard
Peter Brandt: "If you can't draw at least two valid patterns on a chart, you've missed something." 
OTOH, redrawing charts to make things "fit" probably isn't the best idea. 
 
In my experience, many times when a trendline (especially a lower trendline) is broken, the price then rises to touch the trendline from the lower side, retesting the breakout area. It later decides what to do, jump back above the TL, or continue to break downwards. You can see an example in that chart on the right side just as MACD starts its big climb. 
 
I think the answer is to determine what works for you, which I know isn't much of an answer. TK's thinking is so much shorter term and smaller scale than mine is so I hate to guess about his charts. 3/20/18
DoubleNaughtSpyDoubleNaughtSpy
Thanks! I guess I should have mentioned that my timeframe is more from an investment perspective vs. a trading perspective. 3/20/18
GonnabesickGonnabesick
DNS -- trend channels do often shift angles. Whether up or down, they often indicate the intensification/deceleration of the move, so don't discount them. As for violations of the channels, 2 thoughts: 
1) throw overs are common for 4th waves, and 
2) often you'll see a bunch of parallel inner and outer channels that run for awhile, which often make up a retracement of a bigger wave 
http://invst.ly/6z5qa
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3/20/18
DoubleNaughtSpyDoubleNaughtSpy
@Gonnabesick Nice! I have noticed the parallel lines or channels within channels. I had not really thought about using it with EW though, as I pretty much gave up on trying to figure it out years ago. lol 3/20/18
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