Thread: Drawing correct resistance and support-lines

For the matter of practice; another pennants on 5m chart gbpjpy. As stated before, a pennant is a pattern for continuation of currently trend. We are currently looking for a break to the upside.

Our pennant upgrade on gj:

aiyahmarklah; look just how Asia low play as a magnet for price. Could be that london pivot is nearby

Originally Posted by ;

hi Adeiaz1 and most of traders out there!

I've a question in your mind here regarding drawing trendlines. Most of the sources on the internet suggest that trendline are drawn on the shadows instead of the near of price. However one book that I've read Trading for a Living suggest that trendline ought to be drawn to the near of price. As my trading expertise is few, I'm not able to judge if which is the suitable way of drawing trendline. I hope u all can help answer my question and resolve my confusion.

1)Which is the correct way of drawing trendline and why?

2)Another question I have is that which gd source are there from the net that explain the theory behind SR lines and trendlines? Just like Adeiaz1 said an uptrend tells tt demand is higher than supply and the SR lines(require lines) etc. the majority of the websites teaches hot to spot and draw but didn't have gd explanation behind. I think that knowing why is as important as learning how to draw properly.

Thanks in advance and gd trading to each of

Yuna

LOL of coz I do,

Personally I have been switching between candle charts and closed price line chart whilst trading. I do have certain guidelines though it depends upon which angle you view the price action? Eg., even if you consider the conventional candle rod patterns as part of your analysis then the shadows are are important when drawing some lines.
Secondly, if your breakout is from a pattern drawn with shadows comprised, then I wouldn't wait for the candle to close, I'd choose the transaction once it breaches the line.
But if the breakout is from a pattern drawn from closed patterns, I'd wait for that candle to close above/below the line before beginning any trade. ( feedback required as its own perception ) (THANKS)

As to why trendlines work, its approximately geometry also. There are certain laws behind price action as well as charting.

The above works for me, its about practice really. When you see a pattern, you should have the AH HA!! This is the one feeling. Confidence from the lines you have drawn is important for obvious reason, besides poor signals it'll slow down the decision making process, these impacts will cost u pips.

As you practice, you'll notice how patterns repeat themselves over and over again. TRENDLINES WORKS !! Keep it easy.

Regards

mARK

YUNA, why dont you think about trading micro lots, some brokers provide them. It is better than the plogical facet of instruction, trading dummy money is better, you'll be.

Originally Posted by ;

; seem just how Asia low play for a magnet for price. Could be this london pivot is nearby

Hello,

the leadership over the last 2 days is cloudy too, nevertheless my take is...
If GJ clears 205.50 upward thus breaking asia high it may open a way to 50 pips or so. I prefer a trade on the upside, if it is not breached its session From NY open.
The general trend is still down...

How do you derive your pivots?

Regards

mARK

Originally Posted by ;

LOL of all coz I do,

Personally I have been shifting between candle charts and closed price line chart while trading. I do have guidelines though it depends on from which angle you view the price action? Eg., if you consider the conventional candle stick patterns as part of your analysis then the shadows are are important when drawing some lines.
Secondly, in case a breakout is from a pattern drawn with shadows included, then I wouldn't wait for the candle to close, I would choose the trade once it breaches the line.
However if the breakout is from a pattern drawn from closed patterns, I would wait for that candle to close above/below the line before beginning any transaction. ( feedback required as its my own perception ) (THANKS)

As to the reason why trendlines work, its approximately geometry also. There are mathematical laws behind price action in addition to charting.

The above works for me, its about clinic really. When you see a pattern, you must have the AH HA!! This is the 1 feeling. Confidence is important for reason, besides bad signs it'll slow down the decision making process, these impacts will cost u pips.

As you practice, you'll become aware of how patterns repeat themselves over and over again. TRENDLINES WORKS !! Keep it easy.

Regards

mARK

YUNA, why dont you consider trading micro lots, some brokers provide them. It is much better than the facet of instruction, investing in dummy money is better, you'll be.

My feedback is tt I do agree wit u tt if ur tl is attracted frm line chart, better to wait for it to close as u noe tt tl tt attracted frm line chart is (nearer) as it doesn't include shadows. However if attracted such as shadow I personally wait for it retest and to close. Maybe ur style is more aggresive or u're enter for a quick scalp?

Wahaha geometry and mathematics legislation, chim sia. I like ur example of this Ah Ha moment. Anyway thanks for your advice, I'm contemplating micros. Which broker use? Dun tell me u use DBS, LoL!

Yuna

Originally Posted by ;

oh I mean is mine believed a pennant? Since the angle was steep and doesnt seem like a pennant. Anyhow here is the upgrade



Yuna

Yuna, my models beneath hehe

Originally Posted by ;

Hello,

the leadership over the past 2 days is unclear too, nevertheless my take is...
Should GJ clears 205.50 upward thus breaking asia high it may open a way to 50 pips or so. I favour a commerce on the upside if it is not breached its session From NY open.
The general trend is still down...

how can you derive your pivots?

Regards

mARK

I concur on 205.50 amount, if busted we ought to watch more buying of GJ. Its not only Asia high, it is in the area to preceding high recently.

I compute my pivots from both London and Asia start (24h).

Originally Posted by ;

My feedback is tt I do agree wit u tt if ur tl is attracted frm line chart, better to wait for it to close as u noe tt tl tt attracted frm line chart is (nearer) as it does not include shadows. However if on including shadow I drawn wait for it to shut and retest. Maybe ur style is aggresive or perhaps un're input for a fast scalp?

Wahaha geometry and math legislation, chim sia. I like ur example of the Ah Ha minute. Anyhow thanks for your advice, I am contemplating micros. Which broker u use? Dun tell me u use DBS, LoL!

Yuna

LOL, I trade intraday lah. Awake during london and NY session. My trades typically last 15m to 4 hrs. ( I trade fool-time )

mARK

Originally Posted by ;

oh I mean is mine believed a pennant? Because the angle was intense and doesnt really seem like a pennant. Anyway here's the upgrade



Yuna

Pennant marks the midway stage in a movement. Since gbp/chf on such moves up and down, I wouldn't call it a perfect one. Best examples is if you have a strong bear/bull movement and then it occurs. As we had on the gbpjpy example earlier today.