{"id":4016,"date":"2009-09-25T10:53:41","date_gmt":"2009-09-25T15:53:41","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=4016"},"modified":"2009-09-25T10:53:41","modified_gmt":"2009-09-25T15:53:41","slug":"how-a-kid-with-a-ruler-can-make-a-million","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/09\/25\/how-a-kid-with-a-ruler-can-make-a-million\/","title":{"rendered":"How a Kid With a Ruler Can Make a Million"},"content":{"rendered":"

A Lesson in Drawing and Using Trendlines<\/span><\/h3>\n

The following article is adapted from a brand-new 50-page ebook from Elliott Wave International. Learn \t\t\t\t\t more about The Ultimate Technical Analysis Handbook, and download your free copy here<\/a>.<\/span><\/p>\n

By Jeffrey Kennedy<\/strong><\/p>\n

When I began my career as an analyst, I was lucky enough to have some time with a few old pros.<\/p>\n

One in particular that I will always remember told me that a kid with a ruler could make a million dollars in the markets. \t\t\t\t\t He was talking about trendlines. I was sold.<\/p>\n

I spent nearly three years drawing trendlines and all sorts of geometric shapes on price charts. And you \t\t\t\t\t know, that grizzled old trader was only half right.<\/p>\n

Trendlines are one the most simple and dynamic tools an analyst can employ… but I have yet to make my million dollars, \t\t\t\t\t so he was wrong — or at least early — on that point.<\/p>\n

Despite being extremely useful, trendlines are often \t\t\t\t\t overlooked. I guess it\u2019s just human nature to discard the simple in favor of the complicated.<\/p>\n

(Heaven knows, if they don\u2019t understand it, it must work, right?)<\/p>\n

\"Soybeans<\/p>\n

In the chart above, \t\t\t\t\t I have drawn a trendline using two lows that occurred in early August and September of 2003.<\/p>\n

As you can see, each time prices approached this line, they reversed course and advanced.<\/p>\n

Sometimes, soybeans only fell to near this line before turning up.<\/p>\n

Other times, prices broke through momentarily before resuming the larger uptrend.<\/p>\n

What still amazes me is that two seemingly insignificant lows in 2002 pointed the direction of soybeans — and identified \t\t\t\t\t several potential buying opportunities — for the next six months!<\/p>\n

Get more lessons like the one above in the free 50-page Ultimate Technical Analysis Handbook. Learn \t\t\t\t\t more and download your free copy here<\/a>.<\/strong><\/span><\/p>\n

\n

Jeffrey Kennedy <\/em><\/strong>is the Chief Commodity Analyst at Elliott Wave International (EWI). \t\t\t\t\t With more than 15 years of experience as a technical analyst, he writes and edits Futures \t\t\t\t Junctures<\/a><\/span>, EWI’s premier commodity forecasting service. <\/em><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Jeffrey Kennedy – When I began my career as an analyst, I was lucky enough to have some time with a few old pros…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-4016","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4016","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=4016"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/4016\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=4016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=4016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=4016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}