I realize I will get some flack for saying this, but hey, we are all entitled to our own opinions. Regarding long term trendlines, frankly I don't believe that a line which connects two points, only 6 months apart, near a hugely significant top, have any meaning whatsoever 4 years later.
If you push me to, I will suggest that drawing lines, particularly on indicies, that run for years is total quackery, so don't push me.
If asked I'll explain why.
First off, on the original question, the other reason for difference between daily, weekly and monthly is simple: Month end bars frequently do not end in the same place as weekly bars -- a month which ends on Tuesday will have a different high/low in most cases than the bar for the end of that week.
Here's the weekly chart with trendlines drawn using Tradestation's "snap to" feature. Accurate enough.
trendvue.com
The magenta line is the one which has been discussed.
The Orange descending trendline is more acceptable to me for at least it makes some sense, connecting the highest high which precedes the lowest low without being penetrated by a bar which closes above the line. That's a line per "Trader Vic". Victor Sperandeo's methodology is the one I use. It makes sense to me.
But honestly, horizontal lines of support and resistance are of far more use IMO. I only use lines at angles to mark out patterns.
Just one person's opinion. |
