The Age Old Question
Nov 12, 2012 at 07:26
935 Görüntüleme
7 Replies
Sep 04, 2011 zamanından beri üye
42 iletiler
Nov 12, 2012 at 07:26
When drawing trend lines , wick or body ? Or sometimes both? Or the tips of the wick but through some other wicks?
Just curious of what traders are doing when they draw trend lines. I use Demark Trend Lines sometimes auto and they use the wick tips as you probably know. I find myself drawing trend lines freehand using a variety of ways on different pairs.
What do you do?
Thanks for the input.
Just curious of what traders are doing when they draw trend lines. I use Demark Trend Lines sometimes auto and they use the wick tips as you probably know. I find myself drawing trend lines freehand using a variety of ways on different pairs.
What do you do?
Thanks for the input.
Jan 14, 2010 zamanından beri üye
556 iletiler
Nov 13, 2012 at 10:06
That's a question that bothered me for a long time. I was using the body at first after which I've discovered I was losing many opportunities - using the body for trend-lines approach is more error prone simply because of the timezone difference from broker to broker; so creating a chart with one broker's feed may look completely different with a another broker's feed.
I've tried using the wick and discovered it is much more accurate as there are not many changes from broker to broker in terms of high/low values. To eliminate the minor discrepancy that still exist, I just use the area next to the trend-line (for example 10 pips) as a 'safe' zone as if the trend-line was breached.
I've tried using the wick and discovered it is much more accurate as there are not many changes from broker to broker in terms of high/low values. To eliminate the minor discrepancy that still exist, I just use the area next to the trend-line (for example 10 pips) as a 'safe' zone as if the trend-line was breached.
Sep 04, 2011 zamanından beri üye
42 iletiler
Nov 14, 2012 at 04:09
Ah, Thanks James. Very helpful and no one has explained it like that.
forex_trader_94526
Oct 09, 2012 zamanından beri üye
16 iletiler
Nov 14, 2012 at 12:18
I agree with james. Using the wicks also helps in defining a better trend because it represents the high/low in a candle and thus enables you to find better support/resistance levels.
forex_trader_43716
Aug 06, 2011 zamanından beri üye
345 iletiler
Nov 14, 2012 at 21:09
Trend lines join highs with highs, and lows with lows, so it makes sense to use the wicks since these represent highs and lows. The more important factor is making sure you work from 'Right to Left' on the chart, joining the nearest high/low with the previous nearest high/low.
Sep 04, 2011 zamanından beri üye
42 iletiler
Nov 15, 2012 at 02:21
Thanks Gary and JW
Sep 26, 2009 zamanından beri üye
11 iletiler
Dec 09, 2012 at 04:58
I use the wicks I leave the highest high or lowest low that is the swing high or low at the start of the trend off the trend line. I find that often that first swing or reversal is out of line with the trend I am looking at because it might be a stop hunt and is out of the range the market wants price to be in. By drawing my trend lines from the less extreme points the trend line is not as steep and I don't get as many false trend line breaks. I do miss a few entries that would have been good but I think caution is a more profitable practice for me. I draw my lines on 1hr and 15m charts zoomed out to view a few days worth of data. On longer charts that even out things like news releases and inter day stop hunts I would include the extreme swing candle.
Sep 04, 2011 zamanından beri üye
42 iletiler
Dec 09, 2012 at 05:05
Shr1k posted:
I use the wicks I leave the highest high or lowest low that is the swing high or low at the start of the trend off the trend line. I find that often that first swing or reversal is out of line with the trend I am looking at because it might be a stop hunt and is out of the range the market wants price to be in. By drawing my trend lines from the less extreme points the trend line is not as steep and I don't get as many false trend line breaks. I do miss a few entries that would have been good but I think caution is a more profitable practice for me. I draw my lines on 1hr and 15m charts zoomed out to view a few days worth of data. On longer charts that even out things like news releases and inter day stop hunts I would include the extreme swing candle.
Thanks SHr1k
Good Info
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