The above charts query arised when a friend trader mailed me, a Auto trendline drawn by AFL on amibroker...And the blue line shown on my metastock chart posted is the resistance line drawn by that AFL...why...???
Bcoz automatic AFL's consider the last high-low as a starting point to draw TL. So the spike high where i started the blue TL is what drawn by that AFL....But do you think, that is a valid TL, is the question...???
In my Trading knowledge, i see Red as a more prominent TL acting as a resistance. Just see the starting point of my RED TL, its prior to blue one. After that the spike high in my knowledge is best called as the exhaustion move, as prices penetrated it failed to close above it.After that watch that the big sell bar touch of July starting, placing more emphasis on that red TL. After that it too has that three bar touches on late august, as similar to Blue TL. After that the orange shaded bar shown on september is again telling lack of strength, as prices even failed to touch that TL. and now in october, We are still resisting near that red TL. We got close yesterday, if we follow up comes, then it will be a upside breakout trade here...
Also, the lower support line which is in Red is running parallel to upper red line..
So whats your perfect TL...blue one or Red one....??? Brush your skills and logic and follow some logic while drawing TL...
Bcoz automatic AFL's consider the last high-low as a starting point to draw TL. So the spike high where i started the blue TL is what drawn by that AFL....But do you think, that is a valid TL, is the question...???
In my Trading knowledge, i see Red as a more prominent TL acting as a resistance. Just see the starting point of my RED TL, its prior to blue one. After that the spike high in my knowledge is best called as the exhaustion move, as prices penetrated it failed to close above it.After that watch that the big sell bar touch of July starting, placing more emphasis on that red TL. After that it too has that three bar touches on late august, as similar to Blue TL. After that the orange shaded bar shown on september is again telling lack of strength, as prices even failed to touch that TL. and now in october, We are still resisting near that red TL. We got close yesterday, if we follow up comes, then it will be a upside breakout trade here...
Also, the lower support line which is in Red is running parallel to upper red line..
So whats your perfect TL...blue one or Red one....??? Brush your skills and logic and follow some logic while drawing TL...
Last edited:
