Generally speaking would you say better thrend lines are drawn on the 4hr interval?
Generally speaking would you say better thrend lines are drawn on the 4hr interval?
Yes. However, in case of choppy market conditions, it is far better to return to 1hr, 30 mins or 15 mins. In the event that you had detected that the cable 1 day chart you can this for fourteen days( two weeks in a month that the GBP goes up and also for a second 15 days it moves down) and also for a second 15 days roughly the market stays choppy.Originally Posted by ;
However, if one selcts the smaller time frame of 1 hr/ 30 mins/ 15 mins, it is better to be ahead of the computer constantly to select the appropraite step. In case of longer period fr, one can have the opportunity to unwind and be off the screen for a while.
When drawing your trendlines, is there some defined distance between the 2 points? If not, what's an perfect number of bars(4hr chart) that one ought to let pass before connecting ths lines (to get a solid signal)? 12 bars, 20, 16?
Thanks
Please note Nikim this advice is purely about using trendlines based on Tom DeMark (Mouteki) methodology.Originally Posted by ;
The principle behind this is that you are looking for the latest price action, hence the most recent support/resistance points. By all means be aware of long-term trends, but to focus on the potential break of the latest price pattern you want to draw your lines as follows:
This applies to an uptrend.
(1) You draw your lines from RIGHT to LEFT (not left to right as is normally suggested)
(two ) You start looking for a bar/candle nearest into the current active bar/candle which has two completed bars to the left of it and two completed bars to the right of it which have LOWER HIGHS than the pub you have chosen. When you have found a qualifying bar/candle you treat that as Point 1.
(3) Seeking into the LEFT you search for another nearest bar/candle which also follows the rule laid out in (2). When you have found a qualifying bar/candle you treat that as Point 2. Please notice: This candle's High needs to be HIGHER than the top of Point 1.
(4) Draw your trendline from Point 1 to Point 2
To get a downtrend, aside from Rule (1) just undo the principles listed previously, ie you search for bars/candles using HIGHER LOWS. Remember TLs should run from RIGHT to LEFT.
There's no Perfect number of bars between the points however, there may never be less than 4
Greetings, I concur with Scott and Peter's take on the TLs drawn and wished to add this tid bit from Tom DeMark's publiion:
On page 48 he begins a section that he calls Revolutionary Breakthrough: Validation of Intraday Price Breakouts. He goes into stating, (I am summarizing) that a validation of a TL fracture will incorporate a Closing price on the pub immedeately before the breakout to the upside was a down near poetry that the previous days close.
Out of his examples you can see that there's first the suitable TDTL drawn. . .then he waits... once there's a fracture of this TDTL AND the previous candle to this rest closed in the opposite direction of the fracture he feels that the TDTL fracture has now been confirmed.
If I've somehow buggered up exactly what I've read somebody please fix me...I've been up all night trading and I't 9am pacific and I am hittin' the hay.
: ) Thom
Hello,
I have 2 questions:
1. Tom DeMark's book - where do I find it? Are there any pdf file, so I can download it?
2. Please, look in the attached picture: if 2 or 3 candles in a row have the exact same high (low) - can I draw a trendline through them?
Thx!
3trader
From what I know in the two weeks of using this system, yes you can and should draw the trend line when you got over 1 stage as the high/low. The 1 thing that you want to be sure of is that you have 2 candles on either side which aren't higher/lower then your trendline point.
As far as a PDF on DeMarks book I'd Love to Obtain a copy too.
Can you post and/pm me that momentum indior you use? TD in his book says to use a momentum indior and an ema cross to correct the setup... I feel that the ema configurations are 30 and 9. . .can anybody confirm?Originally Posted by ;
Hey Jetheat,
Breakout of all trendlines can be a effective trading egy, I hope it goes well for you. If you continue to exchange this tho, then you might wish to have a look at the publiion Encyclopedia of chart patterns over 1000 pages of different patterns and how to exchange them, stats etc.. Some patterns have proven themselves to be winners more times than not. My copy is on its way(gotta love amazon).
I exchange a different egy than fashion patterns but always keep an eye out for them since they can be another supporting sign to make a stronger case to buy or sell.
GCTrader
The latest one applies. That means you just broke the upper trend line which described a down trend and you bounced off the latest lower trend line which defines a up trend. You are in a uptrend. An the broken downtrend line should become support...
It looks to me like you've drawn them flawlessly for a TDTL level two. With the next exception the newest up trend line isn't valid till you've completed the second pub. Put simply the pub that's current must shut then line is valid.