http://www.netpicks.com/drawing-trend-lines/ - Read more
Give a trader a peak or a trough and they will find a way to draw trend lines that may or may not have any use in their trading.
Like most forms of technical analysis, trend lines are often abused, misused, and for the most part are not drawn with any sort of consistency.
They can be very useful but virtually like anything else in your trading plan, you have to find consistency in how you use them.
Let’s look at what trend lines mean and then list out a few ways you can draw them.
We will then follow-up on a 1-2-3 reversal made popular by Vic Sperandeo
Trend Lines Help In Swing Analysis
Markets go up, down, sideways and when a market is trending, looking at the impulse and corrective swings can tell you the strength or weakness of a trend.
When a market is trending up, we expect to have impulse moves larger in length than the corrective declines against the trend. This shows that the demand is still high for the particular market.
- See more at: http://www.netpicks.com/drawing-trend-lines/
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