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Technical analysis can be as complicated or simple as one makes it. I have
found over the years that the KISS approach works best for me.
Trendlines are one of the major tools I use to help me identify the trend as
well as support and resistance levels. They work equally well on very long
term charts all the way down to intraday charts.
I combine cycles and trendlines to find low risk / high probability trading
opportunities. These opportunities range from major position trades that may
last several years to intraday trades that may last one hour.
The focus of this discussion is on intermediate term rising tops trendlines.
These trendlines are drawn from two tops in the past and are rising through
time. These trendlines can be used for resistance points and support points
out into the future. Trendlines are not a system but a tool which when
combined with other tools, like cycles and oscillators, can help a trader
identify low risk / high probability trading opportunities. I have attached
several .gif files for your viewing pleasure. (Due to RealTraders 65k file
size limit more .gif files are included in two more posts)
For those of you new to technical analysis, spend some time empirically
analyzing the charts and draw your own conclusions. Take some time
experimenting with trendlines and do some reading on trendlines. I feel it
will be well worth the time and effort.
Trendlinely,
David Pearson
dhpearson@xxxxxxx
PS. If your software can't open the attachments let me know and I will encode
the files to a MIME text format so you can decode and view the files. I use
Windows95 Messaging version 4.0.839.14. The attachments come as icons for
simple double click viewing by your .gif viewing software.
Attachment Converted: "c:\eudora\attach\DOW30.GIF"
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