Comments on: TrendLines work, don’t they? (2)

By: David Aranzabal

David Aranzabal — Tue, 09 Jun 2009 09:20:52 +0000

Hi jamie,

Yes they do work!!
welcome on board!

By: David Aranzabal

David Aranzabal — Tue, 09 Jun 2009 09:19:48 +0000

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.

By: David Aranzabal

David Aranzabal — Tue, 09 Jun 2009 09:16:40 +0000

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.

By: David Aranzabal

David Aranzabal — Tue, 09 Jun 2009 09:13:20 +0000

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.

By: David Aranzabal

David Aranzabal — Tue, 09 Jun 2009 09:07:55 +0000

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

By: jamie

jamie — Sat, 06 Jun 2009 03:21:12 +0000

Yes, trend lines do work!

By: Karl Swanson

Karl Swanson — Fri, 05 Jun 2009 14:40:20 +0000

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

By: su25

su25 — Fri, 05 Jun 2009 14:29:14 +0000

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

By: Jim

Jim — Fri, 05 Jun 2009 13:00:24 +0000

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.

By: su25

su25 — Fri, 05 Jun 2009 12:50:38 +0000

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