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Birdman / Cody on Trendlines |
March 2, 2004
This text goes with the mp3 file of the class. If you plan on replaying the mp3 multiple times, please download it and play it locally.
http://charts.dacharts.com/2004-03-02/birdman_2.png
16:52 jr01: why do u call them swing
16:52 ollie: dip
16:52 wf: just significant ups and downs - waves
16:53 jr01: pivots - reversal points
16:55 midge: Birdman, I notice you drew through price.......how do you know
when to draw through price or not?
16:56 midge: thank you
16:57 wf: do you mean lower low to invalidate?
16:58 wf: Cody, mind repeating how you use lower tf to enter?
16:58 wf: oh, ok re/lower high
16:59 midge: What constitutes "broken"...an entire bar below the TL?
17:02 Elroch: What sort of entries are you looking for on lower frame?
17:02 @Buffy2: nice job birdman
17:03 Elroch: No hurry
17:04 Elroch: Right
17:05 bill: Great
http://charts.dacharts.com/2004-03-02/birdman_7.png
17:08 Blaiserboy: I think you do super. precise like buffy
17:11 bill: Perfect
17:11 wf: good stuff, birdman, ty
http://charts.dacharts.com/2004-03-02/birdman_8.png
17:15 HarshAmi: Is it true that lows should be connected in uptrend and highs
in downtrends only?
17:16 HarshAmi: thanks
17:16 @Buffy2: that is normal but sure can do a lot more
17:19 jr01: Birdman when you say buy in this case you are talking short right?
17:19 Brach: sounds familiar :)
17:19 ollie: its a poke bar?
17:19 Brach: vaguely
17:19 focus: name for 4 t/l shown-1-descending bottoms t/l , 2- descending tops
t/l, 3- ascending bottoms t/l , 4-ascending tops t/l.. also Ensign has tool
to draw parallel t/l
17:19 TeddyBass: :)
17:19 ollie: yes
17:20 jr01: ok just want to understand
17:20 @Buffy2: brach we need a class from you
17:20 TeddyBass: Birdman, to draw a trendline do you use C prices or you choose
peaks H/L?
17:20 ollie: ty
17:20 jr01: so this is an mof too right? Buffy?
17:21 TeddyBass: thank you
17:21 @Buffy2: not going by second study window - sling
17:21 jr01: ok tx
17:22 drh: do you use the linear regression tool in ensign
17:22 @Buffy2: if you have Ensign can just make line active - move cursor to
where you want it anchored and hit space bar to copy it
17:22 jr01: now that was a sling
17:22 niti: if you are wrong where do you put stop loss
17:22 TeddyBass: drh: I sometimes use it in Amibroker
17:22 focus: Ensign tool for parallel t/l draw ab move tool to c it will draw
cd
17:22 ollie: is there one sell short on this chart only and no longs for you?
17:23 Elroch: Useful, focus
17:23 focus: y
17:23 @Buffy2: rather use lines so I can adjust easier if need be - but do whatever
works for you for sure
17:24 ollie: ok
17:24 focus: can adjust both lines at once with tool
17:24 drh: ty
17:24 ollie: ty
17:25 @Buffy2: many times only want to adjust one focus
http://charts.dacharts.com/2004-03-02/birdman_9.png
17:25 focus: yes adjust one others align
17:25 @Buffy2: yes
17:26 jr01: Birdman is this a continuation of the other chart?
17:27 jr01: yes
17:30 @Buffy2: all work - pick one and learn it as NQoos would say
17:33 TeddyBass: so, you adjust trendlines in the future if necessary, right?
17:33 Bob Henry: Birdman, why didn't draw the top trendline above the area where
it is drawn? I'm referring to the area above the yellow circle
17:33 TeddyBass: yes
17:34 kw24: between a nd b no higher high but missed what you said
17:34 TeddyBass: I wanted to ask the same question
17:34 TeddyBass: why didn't draw the top trendline above the area where it is
drawn? I'm referring to the area above the yellow circle?
17:34 kw24: b makes a lower low from a but no higher pt in-between
http://charts.dacharts.com/2004-03-02/birdman_6.png
17:36 @Buffy2: true kw cause all inside bars so many don't
use it
17:36 kw24: ok gotcha
17:36 @Buffy2: use what you see - you will see more and more
http://charts.dacharts.com/2004-03-02/birdman_4.png
17:40 @Buffy2: Brach taught me this one two points draw a
line - it will come into play later
17:42 Elroch: To me a and b seem a bit too close to find an ideal trendline.
If b is moved up by 1 tick the line would move a very long way. (The highs are
only two ticks apart). What's your opinion?
17:43 Elroch: Right
17:43 @Buffy2: any two pts works many times - play with it Elroch
17:43 jr01: in my thinking I would have drawn a TL from b to the other pivots
that you missed
17:43 @Buffy2: I would draw both
17:44 niti: If I drew the upper TL touching the lower highs before the yellow
circle, then the break of the TL and then swing lack to touch the upper side
of this broken TL indicates to me a change of trend; any comments?
17:44 TeddyBass: niti: I agree
17:44 @Buffy2: most probably cause it looks real close to test of tl on those
highs if it was there
17:45 TeddyBass: but that's OK joining any two points
17:46 niti: thanks birdman
17:47 ollie: thanks birdman very nice
http://charts.dacharts.com/2004-03-02/birdman_11.png
17:49 @Buffy2: yeah cause this could be an ascending triangle
17:49 bridge: can you draw in the bull flag by the tl break
17:49 @Buffy2: it is the reason to be careful here
17:50 bridge: ok, see it now
17:50 @Buffy2: it broke out of the flag - conservative traders wait for the
test of tl
17:51 @Buffy2: like the circle bars do
http://charts.dacharts.com/2004-03-02/birdman_5.png
17:52 jr01: so you were short on this trade and you covered
here? or you were long and you sold?
17:53 TeddyBass: so being conservative you would look for short at the yellow
dot?
17:54 jr01: it just says that the trend is changing
http://charts.dacharts.com/2004-03-02/birdman_3.png
17:55 bill: Got to run, , , Birdman Thanks, that was an excellent explanations
of Trendlines !
17:55 TeddyBass: bill be back someday
17:57 jr01: birdman so you have a and b points and then you draw a parallel
tl at c without having a second pivot such as D?
17:57 @Buffy2: y you make the assumption based on a and b
17:57 TeddyBass: yes jr01
17:57 jr01: or where the yellow circle is
17:58 jr01: got you thanks
17:59 jr01: so that was about 11.50? or 14.50? on a 266T or 550T
18:00 jr01: yes
18:01 Wayne53: Were you saying that before taking a trade you want to see two
touches of the trendline
http://charts.dacharts.com/2004-03-02/birdman_11.png
18:03 Wayne53: yes
18:03 Elroch: That's a nice example
18:06 jr01: bird,man can u take today's 266 chart from west coast time and tell
me please how you would draw a tl there
18:06 Blaiserboy: this has been more than excellent....... thank you for your
efforts, Cody
18:07 @Buffy2: yes great job
18:07 niti: thnx Cody
18:07 clayidus: Extremely well phrased also
18:07 WalkerJ: Thanks, much appreciated!!!!
18:07 TeddyBass: Birdman, do you try to preserve the parallelism (?) of channel
lines or you allow them to be skewed a little?
18:08 amg2: thanks muchly!
18:08 kw24: Thanks Birdman, excellent.
18:08 mmaker: good job Cody - interesting concept on the parallel lines
18:08 satish: thnx
18:08 TeddyBass: thanks Birdman
18:09 @Buffy2: posting charts and talking about them is a good thing
18:09 @Buffy2: helps you to get over the "I am afraid to be wrong"
thingy
18:09 jr01: you telling us you old when it comes to trading?
18:09 TeddyBass: :)
18:10 Birdman: LOL jr
18:10 Birdman: old as dirt :)
18:10 clayidus: ;-)
18:10 jr01: lol
18:10 TeddyBass: where's our homework? :-)
Birdman
Trendline Article
homework right there :-)
18:14 TeddyBass: Birdman: do you use Japanese candlesticks or just bars?
18:14 Birdman: I use bar charts but they show the same information.... I am
familiar with the candlesticks and understand the stories each bar tells
18:15 Blaiserboy: this has been an excellent session, I missed the first part,
will be sure to read the parts I missed, we are lucky to have people to help...!!!!!
18:16 TeddyBass: do you sometimes draw channel within a channel?
18:17 Birdman: yes, often times Teddy...but they are usually on different time
frames. Whatever time frames they seem most evident on
18:26 focus: similar examples on 45 minute current trading timeframe
http://charts.dacharts.com/2004-03-02/parallel_trendlines.png
18:26 Great chart focus and thanks for recording this
18:27 focus: ty
18:27 Birdman: focus, great job
18:31 focus: so we are in a wide channel with 1164 major resistance and 1130
major support...within this many other channels of minor support and minor resistance
will occur
18:33 kw24: amg, I recorded w/ stepvoice recorder, seems to have worked....free
software program downloadable on web
18:34 amg2: ah, it was you, kw24-- I've wanted to know how to do that for some
time... "stepvoice recorder"-- is that the name of the s/w?
18:35 kw24: no Focus recorded and posted
18:35 amg2: ok.....what about the s/w name?
18:35 kw24: that was what I tried using and it seems to have recorded it I played
back partial big file, yeah,....stepvoice recorder
18:36 amg2: OK, will check it out. thx!
18:36 kw24: stepvoice.com
18:37 TeddyBass: thanks for your lesson Birdman :)
18:37 Birdman: you're welcome teddy! :)
18:50 focus: thanks for your presentation Birdman
18:56 Birdman: you're welcome focus