(StockChartist) “I often cringe when I see charts posted on other sites where the author inserts a sloping trendline and then jumps to the conclusion that the trendline will act as some sort of wall of support or resistance as the case may be. The first thing I do when I look at the same chart on my system is to look for and usually find what might be horizontal lines that project a dramatically different interpretation. The question is “Which trendline, sloping or horizontal, prevails and trumps the other?” In making a decision as to whether to buy (or sell) and two lines lead to different conclusions which should you pay more attention to?”
“.. if I have to choose between an ascending (or descending) trendline and a horizontal one to drive my decisions I would look to the horizontal one. I can’t easily calculate where the trendline will be a month or two out. But I can easily see whether there are any horizontal trendlines that mark where buyers and sellers have traded places for control of a stock’s trend. Those are the transfers of power that I rely on to help me anticipate what might be ahead for a stock (or Index).”
Full Story: Sloping or Horizontal Trendline: Which is More Trustworthy? (StockChartist)
(PeterBrandt) “How a chartist draws a line can make all the difference in the world between a good call or a bad call, a profit or a loss.”
“.. ‘Brandt, you are bearish one day, bullish the next and bearish the next. Can you make up your mind?’ The answer is a loud, ‘NO!’ I am a chartist. I believe that charts provide set ups with certain reward to risk parameters and trigger points. I do not believe that charts are useful for price forecasting. I am on record with this stance dating back 30 years. When I get a chart screaming a certain message I develop a strong opinion, weakly held. I will hold and state that opinion until the price action tells me something else. Then my scream will carry a different message.”
Full Story: The two faces of Silver (PeterBrandt)
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