Timepass, first the only way to address the anomaly is that it may have been a feeder error. One thing is clear, and that is it was a bear candle, in your case, a red candle. Regardless of the color of the candle, that still does not delegitimatize the TL. That is really the only thing you want to concentrate on.
Pivots or turning points? I don't know. I call them TL's.
Let me get a little more specific with regard to your question. After the dip and first swing low have been connected, the first hit on the TL is usually going to produce a reversal.
The other TL you drew, I do not see any usefulness of it. When I'm done here, I'll post another a chart which will show why I would drawe and upper TL in an uptrend.
Let me give you some good news in lieu of the fact you are a "slowpoke". If the only thing you grasp is lesson 1, you will make lots of pips or ticks on whatever market it is you trade, so let me review the simplicity of it:
1. Draw the TL from the dip to the swing low (vice versa in a downtrend.).
2. Make sure there is a strong break of the TL. If it is not, but the TL is broken, then redraw it.
3. After broken, wait for correction back to the TL or place it was broken.
4. Measure the recent swing high to the dip after the TL was broken, and that will be the minimum distance of the new trend.
If all you do is copy and paste the previous paragraph and live by it, then that is all you need to assimilate from this whole thread. Everyone viewing this thread will make lots of pips and ticks if that is the only thing you ever learned from this thread.
In the next post I'll explain why I like to draw the upper TL in an uptrend.
Ok. 4xpipcounter, I am a slowpoke and am still on lesson 1, but here's trying my hand at a trendline. Given below is the Nifty Futures 28Apr daily chart. By connecting the green candles on 11th and 25feb (?? are they the ones called pivots / turning points ?), we get a line which is going towards 5400. I connected the bottoms of the candles, and also tops, and both seem to be leading to almost the same place, and may intersect in 3-4 days. Please note that this is the chart of nifty
futures.
Why have I mentioned 25th Feb? What is my problem then? The problem is that though the futures show a green candle, the underlying (i.e. the Nifty) itself shows a red candle for that date, so I am unable to reproduce the trendline in the chart of Nifty. Is there any other green candle in the Nifty chart that may be called the pivot and used to draw a trendline from 11th Feb ?
What does this anomaly (between the futures and underlying) signify ?
