Replies to post #78287 on ajtj99's Market Pulse

[Newly2b]

I'm not AJ, but that's never stopped me from butting in before so . . .

It is hard to find anything definitive, in writing, about drawing trendlines properly. I thought I was drawing them correctly until LG and Shack on S.I. straightened me out, and I totally agree that sloppy trendlines makes for sloppy trading. In addition to AJ's opinion, perhaps LG would be kind enough to post some rules if you ask him nicely.

Newly

[ajtj99]

Probably the best way to illustrate my point is to illustrate it. The rule is basically draw a trendline attaching two consecutive extremes in price. Do not draw through an extreme to reach another extreme beyond it. That's a no-no.

A rising wedge should have the anchor point of the lower line below and to the left of the anchor point for the upper rising line. The opposite is true of a falling wedge.

NDX weekly chart showing some trendlines:

http://stockcharts.com/h-sc/ui?s=$NDX&p=W&st=2002-08-13&id=p13735656404&a=6471086&am...