Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
UK Population Growth - Latest ONS Immigration Statistics and Consequences - 24th Mar 19
The Fed Follows Trump's Tweets, And Does The Right Thing - 24th Mar 19
Yield Curves, 2yr Yield, SPX Stocks and a Crack Up Boom? - 24th Mar 19
Risk/Reward in Silver Favors Buying Now, Not Waiting for Big Moves - 23rd Mar 19
Similarities Between Stock Market Today and Previous Bull Market Tops - 23rd Mar 19
Stock Market DOW Seasonal Trend Analysis - 23rd Mar 19
US Dollar Breakdown on Fed Was Much Worse Than It Looks - 23rd Mar 19
Gold Mid-Tier GDXJ Stocks Fundamentals - 23rd Mar 19
Which Currency Pairs Stand to Benefit from Prevailing Risk Aversion? - 23rd Mar 19
If You Get These 3 Things Right, You’ll Never Have to Worry About Money - 22nd Mar 19
March 2019 Cryptocurrency Technical Analysis - 22nd Mar 19
Turkey Tourist Fakes Market Bargains Haggling Top Tips - 22nd Mar 19
Next Recession: Finding A 48% Yield Amid The Ruins - 22nd Mar 19
Your Future Stock Returns Might Unpleasantly Surprise You - 22nd Mar 19
Fed Acknowledges “Recession Risks”. Run for the Hills! - 22nd Mar 19
Will Bridging Loans Grow in Demand and Usage in 2019? - 22nd Mar 19
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Here's Why Trendlines Are Your New Best Friend, Part 2

InvestorEducation / Learn to Trade Sep 10, 2014 - 10:38 AM GMT

By: EWI

InvestorEducation See how trendlines help you manage risk in this real-world example from this free eBook

One of the best aspects of technical analysis is also its biggest drawback: Namely, there are far too many indicators to choose from.


Candlesticks to channels, Relative Strength Index to Bollinger Bands, double tops to moving averages...

Geez! With so many options, you're liable to feel like a "hanging man" beneath "dark cloud cover."

But in reality, all you need is one good, solid place to start; one indicator that can be your technical rock of Gibraltar.

For Elliott Wave International's chief commodity analyst Jeffrey Kennedy, that honor goes to one of the oldest names in the book: trendlines. Back in 2004, Jeffrey went on the record with this tribute:

I believe that trendlines are one of the simplest, yet most powerful tools an analyst can employ. An early mentor of mine said it best when he pointed out that "a kid with a ruler could make a million dollars" by simply drawing trendlines on price charts.

Last week, we showed you how Jeffery used an easily-drawn trendline to anticipate a bullish breakout point in cocoa back in early May.

Today, we're following up with another real-world example, only this time, you'll see how Jeffrey used trendlines to identify lasting levels of price resistance in the most popular grain market, corn.

In his April 2014 Monthly Commodity Junctures Wave Watch video, Jeffrey showed subscribers how a four-month old trendline ensured that corn's upside was limited:

The next chart shows you how corn prices did indeed bump up against their long-time trendline, reversed, and sold off in a powerful decline to their lowest level not just for 2014 -- but their lowest level in four years.

Jeffrey finds trendlines so valuable that he wrote a book about them!

Well, an eBook: a (free) 17-pager titled "Trading the Line: 5 Ways You Can Use Trendlines to Improve Your Trading."

Here's another excerpt:

Look where the upper boundary line provided resistance [in Google]. Notice there is another use for it. The midpoint of the trendline provides resistance in four different areas, which is why I include the center point or the midline when I draw parallel trendlines or price channels.

As the title of Jeffrey's eBook states, there are 5 ways trendlines improve your trading:

  1. Trendlines show you the dominant psychology of investors, be it bullish or bearish
  2. They define your support and resistance price levels
  3. They give you advanced warning of potential price breakout points
  4. They help you identify critical moments in time
  5. Trendlines also tell you when the trend has turned

Want to learn how to draw your own trendlines -- and gain an advantage you've never had before?

Right now, our friends over at Elliott Wave International have the entire 17-page eBook on their shelf of FREE trader resources. It's yours for the reading, right now -- at absolutely no cost.

Follow this link for your free instant download of Jeffrey Kennedy's 17-page eBook Trading the Line: 5 Ways You can Use Trendlines to Improve Your Trading.


This article was syndicated by Elliott Wave International and was originally published under the headline Here's Why Trendlines Are Your New Best Friend, Part 2. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world's largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules