{"id":60685,"date":"2014-09-25T20:04:01","date_gmt":"2014-09-26T00:04:01","guid":{"rendered":"http:\/\/countingpips.com\/?p=60685"},"modified":"2014-09-25T20:04:01","modified_gmt":"2014-09-26T00:04:01","slug":"heres-why-trendlines-are-your-new-best-friend-part-3","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/09\/heres-why-trendlines-are-your-new-best-friend-part-3\/","title":{"rendered":"Here&#8217;s Why Trendlines are Your New Best Friend, Part 3"},"content":{"rendered":"<div id=\"inves-1726117618\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">September 25, 2014<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><h3 style=\"margin-top: 0px;\"><span style=\"font-size: small;\">See how trendlines help you make calculated trading decisions <\/span><\/h3>\n<h3 style=\"margin-top: 0px;\"><span style=\"font-size: small;\">By Elliott Wave International<\/span><\/h3>\n<p>Have you ever seen Donald Duck play pool? Trust us, it isn&#8217;t pretty.<\/p>\n<p style=\"text-align: center;\"><span class=\"LimelightEmbeddedPlayer\"><script src=\"\/\/video.limelight.com\/player\/embed.js\"><\/script><object id=\"limelight_player_892459\" class=\"LimelightEmbeddedPlayerFlash\" data=\"\/\/video.limelight.com\/player\/loader.swf\" type=\"application\/x-shockwave-flash\" name=\"limelight_player_892459\" width=\"480\" height=\"411\"><param name=\"movie\" value=\"\/\/video.limelight.com\/player\/loader.swf\" \/><param name=\"wmode\" value=\"window\" \/><param name=\"allowScriptAccess\" value=\"always\" \/><param name=\"allowFullScreen\" value=\"true\" \/><param name=\"flashVars\" value=\"channelId=e70f4750c1534b70b1ee746d63ee2895&amp;deepLink=true&amp;playerForm=703e7ca85a654ec9929a7d97ff7cd22c\" \/><\/object><script>\/\/ <![CDATA[\nLimelightPlayerUtil.initEmbed('limelight_player_892459');\n\/\/ ]]><\/script><\/span><\/p>\n<p>An expert pool player, on the other hand &#8212; well, he can just <i>look<\/i> at the billiards table and imagine lines drawn out, marking the trajectory the cue ball must take to make the shot.<\/p>\n<p>Now, what if <i>you<\/i> could just look at a financial market&#8217;s price chart &#8212; and see <i>actual<\/i> lines drawn out that aim straight for the &#8220;pocket&#8221; of opportunity?<\/p>\n<p>According to our resident <em>Monthly Commodity Junctures<\/em> editor and chief commodity analyst Jeffrey Kennedy, you can.<\/p>\n<p>All you need to do is implement a tried-and-true tool of technical analysis known as <b>trendlines<\/b>. (And let&#8217;s just say, what Paul Newman is to the game of pool in the <i>Hustler<\/i>, Jeffrey Kennedy is to the field of technical analysis in real life.)<\/p>\n<p>In part 1 of our series, we showed you how Jeffrey used trendlines to identify a major break-out point in <b>cocoa<\/b> back in May 2014. Part 2 played the video of Jeffrey&#8217;s April 2014 <b>corn<\/b> forecast, where he used trendlines to fortify his bearish wave count &#8212; right before corn prices embarked on a powerful sell-off to 4-year lows.<\/p><div id=\"inves-798248818\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>Today, we&#8217;re returning to that April 2014 <i>Monthly Commodity Junctures<\/i> video to show you 3 more examples of how Jeffrey used trendlines to &#8220;call the pocket&#8221; in <b>coffee<\/b>, <b>sugar<\/b>, and the <b>U.S. dollar<\/b>. Roll the tape!<\/p>\n<p style=\"text-align: center;\"><span class=\"LimelightEmbeddedPlayer\"><script src=\"\/\/video.limelight.com\/player\/embed.js\"><\/script><object id=\"limelight_player_162644\" class=\"LimelightEmbeddedPlayerFlash\" data=\"\/\/video.limelight.com\/player\/loader.swf\" type=\"application\/x-shockwave-flash\" name=\"limelight_player_162644\" width=\"480\" height=\"411\"><param name=\"movie\" value=\"\/\/video.limelight.com\/player\/loader.swf\" \/><param name=\"wmode\" value=\"window\" \/><param name=\"allowScriptAccess\" value=\"always\" \/><param name=\"allowFullScreen\" value=\"true\" \/><param name=\"flashVars\" value=\"channelId=6d3feb0b958c445d979ea36aa8cc9c79&amp;deepLink=true&amp;playerForm=703e7ca85a654ec9929a7d97ff7cd22c\" \/><\/object><script>\/\/ <![CDATA[\nLimelightPlayerUtil.initEmbed('limelight_player_162644');\n\/\/ ]]><\/script><\/span><\/p>\n<p>Of <b>coffee<\/b>, Jeffrey said: <i>&#8220;We can expect a <b>counter-trend move back<\/b> to near the previous fourth wave extreme, roughly say between 170 and 160.<\/i><\/p>\n<p>Coffee prices indeed sold off in three waves (i.e. counter-trend action) to the &#8220;previous fourth wave extreme&#8221; after breaking through the lower boundary of the trend channel:<\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.elliottwave.com\/images\/freeupdates\/9_16_14coffee.jpg\" alt=\"\" width=\"480\" height=\"410\" \/><\/p>\n<p>Of <b>sugar<\/b>, Jeffrey said: <i>&#8220;Once complete, wave (Y) of the larger fourth wave will give way to <b>additional selling<\/b> to back below the actual 2014 low.&#8221;<\/i><\/p>\n<p>Here&#8217;s what happened to sugar prices after they fell below their trendline:<\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.elliottwave.com\/images\/freeupdates\/9_16_14sugar.jpg\" alt=\"\" width=\"480\" height=\"413\" \/><\/p>\n<p>Of the <b>U.S. dollar<\/b>, Jeffrey said: <i>&#8220;Ideally <b>we&#8217;ll begin to see this third wave move [up] develop soon<\/b>&#8230; in a nice, volatile move to the upside.&#8221;<\/i><\/p>\n<p>The dollar indeed rallied strongly off that trendline:<\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.elliottwave.com\/images\/freeupdates\/9_16_14dollar.jpg\" alt=\"\" width=\"480\" height=\"389\" \/><\/p>\n<p>It&#8217;s safe to say, once you truly understand the risk-managing power of trendlines, they will become one of the most valuable tools in your technical toolbox. And nobody can attest to that fact more than Jeffrey Kennedy.<\/p>\n<p>In fact, Jeffery loves trendlines so much, he wrote a book about them. Well, a <b>free eBook<\/b> &#8212; titled <i>&#8220;Trading the Line: 5 Ways You Can Use Trendlines to Improve Your Trading.&#8221;<\/i><\/p>\n<p>As the title of Jeffrey&#8217;s eBook states, there are 5 ways trendlines improve your trading:<\/p>\n<ol>\n<li>Trendlines show you the dominant psychology of investors, be it bullish or bearish<\/li>\n<li>They define your risk via support and resistance price levels<\/li>\n<li>They give you advanced warning of potential price breakout points<\/li>\n<li>They help you identify critical moments in time<\/li>\n<li>Trendlines also tell you when the trend has turned<\/li>\n<\/ol>\n<p>Want to learn how to draw your own trendlines &#8212; and gain an advantage you&#8217;ve never had before?<\/p>\n<p><a href=\"http:\/\/www.elliottwave.com\/r.asp?acn=9cp&amp;rcn=aa448&amp;dy=aa091714&amp;url=http:\/\/www.elliottwave.com\/club\/trading-the-line\/default.aspx?code=47403%26articleid=5043\">Right now, we are offering the entire 17-page eBook (14 of those pages include Jeffrey&#8217;s carefully chosen charts and analysis) as part of our FREE trader resources. Once you join the 325,000-plus members of our Club EWI family, it&#8217;s yours for the reading &#8212; at absolutely no cost.<\/a><\/p>\n<hr \/>\n<div>\n<p style=\"padding-top: 10px; border-top: solid 1px #CCCCCC;\"><em>This article was syndicated by Elliott Wave International and was originally published under the headline <a href=\"http:\/\/www.elliottwave.com\/r.asp?acn=9cp&amp;rcn=aa448&amp;dy=aa091714&amp;url=http:\/\/www.elliottwave.com\/freeupdates\/archives\/2014\/09\/16\/Here%E2%80%99s-Why-Trendlines-are-Your-New-Best-Friend,-Part-3.aspx#axzz3DTdFnG00\"><strong>Here&#8217;s Why Trendlines are Your New Best Friend, Part 3<\/strong><\/a>. EWI is the world&#8217;s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.<\/em><\/p>\n<p style=\"padding-top: 10px; border-top: solid 1px #CCCCCC;\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>See how trendlines help you make calculated trading decisions By Elliott Wave International Have you ever seen Donald Duck play pool? Trust us, it isn&#8217;t pretty. An expert pool player, on the other hand &#8212; well, he can just look at the billiards table and imagine lines drawn out, marking the trajectory the cue ball [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-60685","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=60685"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/60685\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=60685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=60685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=60685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}