V. 20:10 (40-43): The Truth About Trendlines by Thomas Bulkowski

V. 20:10 (40-43): The Truth About Trendlines by Thomas Bulkowski
Item# \V20\C10\106tru.pdf
$2.95
Availability: In Stock

Product Description

The Truth About Trendlines by Thomas Bulkowski

Many of the rumors about trendlines are true. Find out what the facts are here.

Is it true that the longer a trendline is, the more significant it becomes? The answer is yes, but this in turn raises other questions. How long should the trendline be to qualify? What is meant by significant? While researching my book Trading Classic Chart Patterns I found lots of platitudes, but little substance. No one seemed to knowhow well trendlines behaved, or at any rate no one was telling. I decided to find out.

A BRIEF REVIEW

In case you are unfamiliar with trendlines, take a look at Figure 1. Here, downsloping trendlines along daily prices connect the minor highs. This way I can see when the trend changes from down to up (as it did in October 2001, when prices briefly closed above the trendline). Similarly, I draw upsloping trendlines connecting the minor lows. Again, Iím looking for a trend change warning, and when prices close below the trendline, thatís when I get worried. I avoid drawing the trendline through prices, as in the internal trendline shown in Figure 2. To draw internal trendlines, ignore the one-day price spikes (called tails) and base your trendline on what the majority of traders are doing. This way, you move with the crowd and ignore the independents.




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order