{"id":81925,"date":"2015-12-03T16:47:42","date_gmt":"2015-12-03T21:47:42","guid":{"rendered":"http:\/\/countingpips.com\/?p=81925"},"modified":"2015-12-03T16:47:42","modified_gmt":"2015-12-03T21:47:42","slug":"traders-and-trendlines-a-match-made-in-opportunity-heaven","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2015\/12\/traders-and-trendlines-a-match-made-in-opportunity-heaven\/","title":{"rendered":"Traders and Trendlines: A Match Made in Opportunity Heaven"},"content":{"rendered":"<div id=\"inves-1309529861\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">December 3, 2015<\/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 why this simple tool helps identify high-probability trade set-ups in real world markets <\/span><\/h3>\n<h3 style=\"margin-top: 0px;\"><span style=\"font-size: small;\">By Elliott Wave International<\/span><\/h3>\n<p>It&#8217;s the start of the winter holidays &#8212; which, if your family is anything like mine, is also the beginning of a long tradition of deeply regrettable line-crossing, i.e.:<\/p>\n<ul>\n<li>Crossing that line into interrogating &#8220;new&#8221; dinner guests as to why they are still single<\/li>\n<li>Crossing that line into inviting your recently divorced sister-in-law to &#8220;stay as long as&#8221; she needs<\/li>\n<li>Crossing that line into a third (no, let&#8217;s be honest) <i>fourth <\/i>helping of pecan pie<\/li>\n<\/ul>\n<p>In these cases, crossing &#8220;the line&#8221; is the first step down a proverbial mine field of emotional and physical discomfort. And there&#8217;s no going back!<\/p>\n<p>But in the world of technical analysis of financial markets, crossing one kind of line is often the first step to identifying a high-confidence trade set-up. The line I&#8217;m talking about is the trendline.<\/p>\n<p>Trendlines are exactly what they sound like &#8212; lines that identify the dominant price trend of a particular market. Simply put, they connects two points, usually price highs or price lows. And, as our chief commodities analyst Jeffrey Kennedy explains, &#8220;trendlines are one of the simplest and most effective tools a trader or analyst can employ.&#8221;<\/p>\n<p>In order to see why, here are two real-world examples of major market reversals forecast by Jeffrey Kennedy with the help of trendlines.<\/p>\n<p align=\"center\"><b>&#8212; Gold &#8212;<\/b><\/p><div id=\"inves-2487746446\" 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>In the November 2010 of our <i>Monthly Commodity Junctures,<\/i> Jeffrey employed a rare trendline timing technique to calculate the next likely turning point in gold&#8217;s future:<\/p>\n<p style=\"margin-left: 0.5in;\">&#8220;As always, we begin with a 1-2 trendline and a parallel of that line against point 3. Next, we connect points 3 and 2 to identify that line&#8217;s midpoint 4. The timeline begins at point 1, February 5, and moves through point 4 to cross the trendline drawn from point 3 on <b>December 6<\/b>.<\/p>\n<p style=\"margin-left: 0.5in;\">How do we use this information? For starters, <b>we mark this date on our calendars<\/b> and watch and wait.&#8221;<\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.elliottwave.com\/images\/freeupdates\/image\/11_24_15gold1.jpg\" alt=\"\" width=\"550\" height=\"285\" \/><\/p>\n<p>So, how did this timing technique pan out? Well, the next chart shows you exactly what happened: Gold hit $1431.10 per ounce, the high of the year in 2010 on December 7, missing the forecasted market turn by a single day. In the weeks that followed, gold fell 8.6%.&#8221;<\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.elliottwave.com\/images\/freeupdates\/image\/11_24_15gold2.jpg\" alt=\"\" width=\"550\" height=\"306\" \/><\/p>\n<p align=\"center\"><b>&#8212; Orange Juice &#8212;<\/b><\/p>\n<p>In the May 3, 2011 <i>Daily Commodity Junctures,<\/i> Jeffrey set the bullish stage in orange juice after prices broke through a specific trendline:<\/p>\n<p style=\"margin-left: 0.5in;\">&#8220;Prices have penetrated critical trendline resistance on a daily closing basis. <b>As you know, I am a huge advocate of trendlines<\/b>, as well as daily closing price action. In other words, today&#8217;s events are significant in the fact that it signals a resumption of the larger uptrend and clears the way for higher prices beyond this year&#8217;s high of 179.30.&#8221;<\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.elliottwave.com\/images\/freeupdates\/image\/11_24_15oj1.jpg\" alt=\"\" width=\"550\" height=\"508\" \/><\/p>\n<p>From there, O.J.&#8217;s uptrend went into full swing, with prices soaring well above the year&#8217;s high as Jeffery anticipated:<\/p>\n<p align=\"center\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.elliottwave.com\/images\/freeupdates\/image\/11_24_15oj2.jpg\" alt=\"\" width=\"550\" height=\"506\" \/><\/p>\n<p>The truth is, no technical tool works alone &#8212; and that includes trendlines. In the world of market forecasting, there is no magic all-purpose measure.<\/p>\n<p>But what we can say is this: Trendlines &#8212; used in conjunction with the Wave Principle and other tools like MACD or RSI &#8212; is the mark of a truly complete technical toolbox.<\/p>\n<p>And here&#8217;s the best part: Jeffrey Kennedy is such a huge advocate of trendlines that he wrote a book about them &#8212; a <b>free 14-page eBook<\/b> that is, titled<\/p>\n<p style=\"margin-left: 0.5in;\"><b style=\"mso-bidi-font-weight: normal;\">&#8220;Trading the Line: Five Ways You Can Use Trendlines to Improve Your Trading&#8221;<\/b><\/p>\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>&#8220;Trading the Line&#8221; &#8212; Jeffrey&#8217;s 14-page eBook &#8212; is available now, for FREE! Simply sign up today to join our 300,000-plus member free Club EWI community and get instant access to this exclusive trader resource.<\/p>\n<p><a href=\"http:\/\/www.elliottwave.com\/grpcontent\/pdf\/1101-Trading-the-Line-Excerpt.pdf\">Log in now to read your free eBook<\/a><\/p>\n<p><a href=\"http:\/\/www.elliottwave.com\/r.asp?acn=9cp&amp;rcn=aa579&amp;dy=aa120315&amp;url=http:\/\/www.elliottwave.com\/club\/trading-the-line\/default.aspx?code=47405%26articleid=6103\">Need a login? Complete your free Club EWI profile and get instant access<\/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=aa579&amp;dy=aa120315&amp;url=http:\/\/www.elliottwave.com\/freeupdates\/archives\/2015\/11\/24\/Traders-and-Trendlines-A-Match-Made-in-Opportunity-Heaven.aspx\"><strong>Traders and Trendlines: A Match Made in Opportunity Heaven<\/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<\/div>\n","protected":false},"excerpt":{"rendered":"<p>See why this simple tool helps identify high-probability trade set-ups in real world markets By Elliott Wave International It&#8217;s the start of the winter holidays &#8212; which, if your family is anything like mine, is also the beginning of a long tradition of deeply regrettable line-crossing, i.e.: Crossing that line into interrogating &#8220;new&#8221; dinner guests [&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-81925","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/81925","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=81925"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/81925\/revisions"}],"predecessor-version":[{"id":81926,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/81925\/revisions\/81926"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=81925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=81925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=81925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}