When newcomers begin to learn about trading, trendlines are one of those topics that come up quite often. Trendlines are lines that traders draw in order to connect a series of prices points together. The point of the trendline is to give direction to where the ticker is moving. Overtime the trendline has evolved into a support and resistance line, market timing, and etc, and that’s where things started to go wrong.
Trendlines lean heavily towards the side of bias because emotions, lack of experience, and more all play a role in the formation of a trendline. Can you imagine, thousands of traders with the same mindset of drawing a trendline they believe is correct.
This all happens simultaneously in a timeframe of your choice…
• Several people had their trendline broken.
• Several people had price bounce off their trendline.
• Several peoples trendline is now acting as resistance.
It’s a crapshoot at best.
What should you do? Go back to the time when price levels mattered more than a line pointing to space or the dirt. Its saved me plenty of times.
Leave a like👍 and/or comment💬.
We appreciate and value everyone's feedback.
"Keeping it short and sweet as always."
- assetsandcoffee📈☕
Trendlines lean heavily towards the side of bias because emotions, lack of experience, and more all play a role in the formation of a trendline. Can you imagine, thousands of traders with the same mindset of drawing a trendline they believe is correct.
This all happens simultaneously in a timeframe of your choice…
• Several people had their trendline broken.
• Several people had price bounce off their trendline.
• Several peoples trendline is now acting as resistance.
It’s a crapshoot at best.
What should you do? Go back to the time when price levels mattered more than a line pointing to space or the dirt. Its saved me plenty of times.
Leave a like👍 and/or comment💬.
We appreciate and value everyone's feedback.
"Keeping it short and sweet as always."
- assetsandcoffee📈☕