Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Thursday, July 10, 2008

Trends with a Crayon

I've talked about Live Trendlines. Let's also talk about Horizontal resistance.
I'm kind of a dick. I think Horizontal trend lines are for 2 dimensional thinkers(to be honest it's actually 3 dimentional thinking). I've drawn horizontal resistance, on this day and a half chart of the spy. Millions of various horizontal resistance... as we get into these levels, I can see a lot of resistance... But Once you get into a place with a lot of resistance, the market tends to move like a Snow plow through it, Slowly, and deliberatly.
4 dimentional thinkers believe that you should also apply Time to your Trends, which is where you get LIVE TRENDLINE SUPPORT AND RESISTANCE.
if you notice, I've drawn some thrend channels, the blue and yellow channels. The yellow indicates that the Trend is Accelerating, and I suspect, after playing with the Blue resistance it will break through and move into the yellow channel.

The horizontal resistance is important, Why? because more people follow it. But the Trend channels give me a better Prediction of what will happen, and give me an opertunity to get in and out of the market.

I'm going to track these and show you what i'm talking about, throughout the day.

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