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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?

To: techtrader73 who wrote (90509)	3/12/2017 8:22:01 PM
From: GROUND ZERO™	1 Recommendation Recommended By Hawkmoon Respond to of 218648

Good question... the reasoning is that since I used the July and August highs (they angled the wedge the widest), so I therefore went with the lowest subsequent low to draw the biggest wedge possible on that chart... GZ

To: techtrader73 who wrote (90509)	3/13/2017 1:49:58 AM
From: Underexposed	Read Replies (1) \| Respond to of 218648

Drawing resistance and support lines in a line chart is subject to the individual drawer's eye. When I first saw this chart of GZ my only issue with it was that he had not drawn a support line and I drew it like he has in that chart.... But you do bring up an excellent point. And actually I think the resistance line could be redrawn as well. When you construct a resistance/support line you should go for the most points you can to make up the line... I would say that section of the chart can easily be worth 4-5 points and is common to the original line and the dotted blue line I drew....but you see that I add to more points of contact in the dotted line. At the time GZ drew that top line it did look like the SPY would retreat making a additional point but it did not... so that line hangs on almost a huge single point as it were. Your suggestion of using the Dec point works very well as extending it back we add about 4 or more points... making it a better line to use. NOW... looking at the upper dotted line, if we accept it as better than the other it would seem that SPY bullishly breached it in Mid February broke that line... and now the original line seems to be valid as well breaking through it as a resistance and now bouncing off it as a support several times.. So I would call it the original line now being the primary support and the dotted line is a secondary report. I don't think the bottom blue line is very good at all... the dotted green line is much stronger having more points in it. It looks reasonably bullish to me right now