If the market had committed a significant move in some direction
during the day, there would be a high probability of some extension
in the same direction during the next day. The same assumption can
also be used for analysis of weekly and monthly charts.
A trendline is like a borderline between the market territory and
open space. Right ahead of an ascending trendline, you should take a short posi-
tion. Be cautious, because every line drawn through any three significant points
will be broken sooner or later. Each subsequent market approach to such a line in-
creases the probability of a break. If a break takes place, stop and reverse your po-
sition a short distance from the break point.
during the day, there would be a high probability of some extension
in the same direction during the next day. The same assumption can
also be used for analysis of weekly and monthly charts.
A trendline is like a borderline between the market territory and
open space. Right ahead of an ascending trendline, you should take a short posi-
tion. Be cautious, because every line drawn through any three significant points
will be broken sooner or later. Each subsequent market approach to such a line in-
creases the probability of a break. If a break takes place, stop and reverse your po-
sition a short distance from the break point.