Random Line Exercise

[CanOz]

I use trend lines in my trading, generally on the daily charts to mark support and resistance. I want to know where the stops are, especially a cluster of higher highs or lower lows, these can be great opportunities....

However, we tend to give too much weight to lines on a chart. To prove that these lines are pretty much useless and that we give them too much weight, try this exercise for a week.

Step 1:
Pick you favorite intra-day market and draw some random horizontal lines across and through the most recent range, save the chart or whatever you need to do to keep the lines.

Step 2:
After the next session, check the chart and see how the market "reacted" to the lines. Rinse and repeat.

Have fun.

CanOz

 

[tech/a]

I use trend lines in my trading, generally on the daily charts to mark support and resistance. I want to know where the stops are, especially a cluster of higher highs or lower lows, these can be great opportunities....

However, we tend to give too much weight to lines on a chart. To prove that these lines are pretty much useless and that we give them too much weight, try this exercise for a week.

Step 1:
Pick you favorite intra-day market and draw some random horizontal lines across and through the most recent range, save the chart or whatever you need to do to keep the lines.

Step 2:
After the next session, check the chart and see how the market "reacted" to the lines. Rinse and repeat.

Have fun.

CanOz

Have you had a chat to Frank Dilernia?

All sorts of S&R there.

 

[tech/a]

Have you had a chat to Frank Dilernia?

All sorts of S&R there.

https://www.aussiestockforums.com/forums/showthread.php?t=6588

 

[CanOz]

Errr...Thanks Tech. I guess i posted this in the beginner lounge to offer it as a means to enable others to learn that one's mind can make any old line look important....While i am familiar with the AMP model and find allot of it resonates well with me, i prefer to stick with my method that i have stuck with for several years now, thanks anyway.

First chart of random lines ... Lets see how they look after the arvo session

 

[darkhorse70]

lol

 

[CanOz]

End of the first day, the random lines were pretty good support and resistance...

 

[CanOz]

Mondays random lines....

 

[tech/a]

Mondays random lines....

THey don't seem all that random

 

[CanOz]

THey don't seem all that random

lol...i was thinking the same thing Tech. I closed my eyes that time...I tried to find a random number generator but i couldn't find a decent one...will keep looking.

 

[CanOz]

My random lines are now resistance, after being support

 

[noirua]