Replies to post #78440 on ajtj99's Market Pulse

[LG]

plexxus: A quick review...

Your daily chart for the SPX included a descriptive annotation that referred to the rising converging trend lines you plotted as "Rising Channel or Wedge".

While I would disagree with the exact placement of those trend lines, I am not going to go there to avoid addition conflict...gg

I understood ajtj to be offering up a lower channel line that would be close to parallel with your top resistance line. Per my work, channels are comprised of a supportive and resistive trend lines that are close to being parallel. In other words ,they do not converge or diverge.

I think you misunderstood ajtj, but maybe you didn’t and I did.

Frankly, my reply to ajtj was intended only in jest with no intention of offending you.

LG

PS: I guess my people skills can always use some work. I guess I could always bite my cyber tongue and not chime in with my opinion in an effort to help someone I deem as worth the effort. I think most of those folks over the years have indicated they benefited from my interjections, but there has certainly been those that were offended and some permanently.

[LG]

plexxus: I see I missed this...

What I want to know is why you didn't view that as a bear flag pattern? What else did you need to see in that pattern to make it a bearish flag pattern? Looks textbook to me.

While the pattern certainly looked bearish, the difference is in the anchoring of the trend lines. I hold to a strict set of anchor and plot rules with rare exception.

I use the bar extremes and I use software that has a "snap mode" which will not allow me to cheat even a little and it assures me of accurate anchoring. I plot each chart as if I am going to risk my money using it, because I usually am risking my money using it.

By having a set of rules developed over the years, I keep a tighter rain on the predictive value I've determined a select number of patterns, tend lines, etc have when used in conjunction with my OB/OS and Trend Strength, Multiple Time Frame Models.

Here is an earlier post that should help...

http://www.investorshub.com/boards/read_msg.asp?message_id=9616614

LG

[Newly2b]

plexxus, Certainly there is a great deal of 'art' involved with the science of T/A, and since we are all looking at the same charted data, it is the degree of 'art' one brings to one's interpretation that makes the difference between correct and incorrect calls, IMO.

I also think playing fast and loose with T/A charting rules can allow bias into one's interpretation but sometimes there is a reason for that bias to exist, and often it is simply a 'gut feel' developed from years of experience staring at charts, a kind of 'artistic interpretation' if you will. Sometimes one looks for something in the chart to justify what one's gut says is about to happen, and so an invalid pattern may play out as one would expect a valid pattern to, but that doesn't give it validity.

Sometimes one can be right for the wrong reasons, but it is the being right that counts.

Newly