10 Responses to “TrendLines work, don’t they? (2)”

1. on 05 Jun 2009 at 7:50 am1su25

   Hi David
   Forgot to mention, yes, first trigger for any trade initiation is a break of a trendline, followed by other set-ups - like MACD, distance to previous swing low/high and session high/low (from money management perpective).
   Regards
   su25

2. on 05 Jun 2009 at 8:00 am2Jim

   Hey David,

   I do use trend lines in my daily trading, however I have one major problem, I always find myself trying to fight it looking for a breakout of the trend. Instead of riding the trend up or down I look for quick trades in the opposite direction looking for a change in the trend. I am trying to overcome this, it’s just a bad habit I have to always look for a change of trend.

3. on 05 Jun 2009 at 9:29 am3su25

   Hi David
   Forgot to mentions emas. They are important too, aside from 50ema, I find 200ema to be quite useful.
   Regards
   su25

4. on 05 Jun 2009 at 9:40 am4Karl Swanson

   Hello David,
   I had drawn the same trend line on the GPB one minute chart. Price seemed to respect it as strong downtrend through the early morning. There was a nice entry around 12:10 GMT @ about 1.6055, booking 1/2 profits about halfway up @ 1.6125. Trend lines certainly work! Your method of putting stops just below swing lows is very well for managing risk once a trend line is broken and indicators point in a solid direction.
   Have a good weekend!
   Karl

5. on 05 Jun 2009 at 10:21 pm5jamie

   Yes, trend lines do work!

6. on 09 Jun 2009 at 4:07 am6David Aranzabal

   Hi, Sorry I didn’t answered before, but I’ve benn quite busy these days.

7. on 09 Jun 2009 at 4:13 am7David Aranzabal

   su25,

   yes, trendlines are very important to help you in your analysis. Use the emas, but try to specialize in few indicators, otherwise, you’ll get confuse because of the multiple signals.

8. on 09 Jun 2009 at 4:16 am8David Aranzabal

   Jim,

   It’s not a bad habit. I use that style everyday as well. I mean, I like to use the trendlines as dynamic support / resistance, but if you get a clear indication that the trendline has been violated, go for it! You can use them to help you in your trend following system but as well for counter trend.

9. on 09 Jun 2009 at 4:19 am9David Aranzabal

   Hi Karl,

   Thanks for your comments. I’m glad we draw the same trendline. That’s funny, isn’t ?
   Managing risk taking half of your position is a good habit to increase your chance of success.
   Let’s keep in touch.

10. on 09 Jun 2009 at 4:20 am10David Aranzabal

    Hi jamie,

    Yes they do work!!
    welcome on board!

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