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To: Win-Lose-Draw who wrote (128885)	2/2/2006 12:50:53 PM
From: bcrafty	Read Replies (2) \| Respond to of 209892

Trendlines are an absolute mystery to me. I understand how to create them, I just don't understand the rationale. Taking a simple 2-point TL, if it is broken, the most common thing I see happen is people redrawing it keeping the older point where it is. IE, they typically adjust the later, more recent point I don't like that either, but I have done it myself a few times. Nevertheless, I think it's to be avoided. But on your thought of "a simple 2-point TL" after much soul searching over the years I've come to feel that a valid trendline should have at least three touches, and the more the better. As far as the "rationale" of trendlines, beside being a quick gauge of the directional trend of an issue, they sometimes appear to serve as another kind of support or resistance, the same as a moving average or even horizontal S/R. They're just one more type of "indicator" to throw into the soup, regardless of where they may be in one's hiearchy of such.

To: Win-Lose-Draw who wrote (128885)	2/2/2006 1:03:57 PM
From: Galirayo	Respond to of 209892

>>I'm genuinely curious at the thought behind the process.<< Maybe Shack will find some Long Drawn out ED Lines ... replete with the Overthrow. I'd volunteer but no way could I explain them as eloquently as he. Until I understood the overthrow .. I used to just capitulate while they Shake the Tree the final time .. now I just try to smile during the overthrow if I was too early. :)

To: Win-Lose-Draw who wrote (128885)	2/2/2006 1:29:08 PM
From: Henry J Costanzo	Read Replies (1) \| Respond to of 209892

I see that BC has already given you a very creditable (as usual) response.. Just to add one thought which occurs to me on reading your post: << if it is broken, the most common thing I see happen is people redrawing it keeping the older point where it is. IE, they typically adjust the later, more recent point.>> What that statement may miss is that the more recent point only emerges after it becomes evident that the extreme of a new {minor recession} {minor advance} has been recorded. So the new more recent point does have some significance..... As BC indicates, there are some features of trend lines which affect their :"character/importance/durability"...A 3-point touch, as BC notes; length of time a line has been in effect; steepness of angle of ascent or descent....(some of the things I've touched on, for example in taking about AAPL and TIE lately)...