Trend lines? Nope, I don't use 'em. Here's why. // Stock technical indicators, Stock chart analysis, Stock market technical analysis, Options chart, Options technical analysis
looking at the markets with David Moadel today we're going to be using
microsoft paint the program that came with the computer to help us do a little
bit of artwork today
yeah it's going to get interesting alright so this is my disclaimer and
please make sure you read the disclaimer every time you watch one of my videos
you know do your own due diligence before you take any advisement from for
myself or from from anybody in the world of finance
now today we're going to be talking about trend lines and I'm not going to
discount trendlines entirely for everybody
ok if they're useful for you great wonderful
by all means feel free to use them but i don't use trend lines myself and I'm
going to show you why
so let's take a look at some clouds shall we look at those pretty clouds you
ever look at clouds and you see some shapes
maybe you're looking at these clouds right now and maybe look at that and you
see a an animal may be a dog or something
maybe you're looking at one of these other clouds and you see something maybe
a turtle or a cat or whatever and that's fine it's it's wonderful that we have
imaginations and we can see things that aren't necessarily really there or you
ever look at look at a constellation
you look at some stars
this one is supposed to be or is the hunter but let's be honest when we look
at this
it's a bit of a stretch of the imagination to look at that and see a
hunter
wouldn't you agree I mean it's just a bunch of dots bunch of stars and I
suppose we could connect lines in our in our minds we can use our imagination but
what we see the shapes that we make aren't really there
the dots might be there the stars but what we create out of that is really up
to us and I feel the same way about trend lines
I mean if we look at a chart
yeah i mean the the prices are there the historical prices they actually happened
but if you're going to start drawing lines I mean you can create just about
any conclusion you can draw lines just about anywhere
I mean you could take it pretty much two or more points and draw a line you could
say there's a there's a bullish trend line right there so that chart is
bullish about
wait a minute what if I what if i connect these two lines or what if i
connect these two these two candles here not now it's bearish
all right way actually it's it's it's neither because if we if we connect
these it's it's a horizontal line
well that's neither bullish or bearish or maybe you call this support and and
you call this one resistance but I could draw lines all day on this chart if I
really wanted to
and now I don't want to save that here's another chart
these are semiconductors again
you know let's let's connect these so that's that's support and it's trending
upward so it's bullish about wait a minute
these more recent candles over here look at that that's that's resistance and
it's bearish and the way but over here it's bullish and I mean come on
again it's it's like the clouds that we looked at or or the constellations in
the stars
you can take any two points and draw a line you can take any shape and make
make sure you know
yeah you can take any pattern or formation and make shapes or objects out
of it in your mind doesn't mean they're really there
here's Apple again are we are we bullying sheesh
are we are we barish
what are we it
here's another one is it support is it resistance
I could do this all day here's his twitter
you know it's bullish but then long-term it'sit's bearish
I don't know if you want to use these trends these types of trend lines that's
fine if it helps you
I I don't find them particularly useful in my put in my training and that's my
style and it doesn't have to be yours but as for me I'd rather use what's
actually there
the candles the prices specifically the historical prices they actually exist
they they happened
all right those are real and even things like the 200-day moving average
now that could be represented by a line but it's real because what is what is a
200-day moving a simple moving average
well it's just an addition problem and a division problem
you're adding up the previous two hundred closing prices which actually
happened and then you're dividing by two hundred okay and that gets you to the
current 200-day moving at simple moving average and that's a real average
it's not a construct of our imaginations
all right it's not so much a subjective or arbitrary like these lines can be so
I'm allowing actual data or information to drive my decisions especially when it
comes to investing my real money
ok when it comes to investing your money i hope you're not placing your lines on
the chart too much I hope you're not imposing your biases your imagination
when it comes to investing your money i hope you're using data
I hope you're using actual historical events that happened in the end it's up
to you but what i can do is help you if you need it
I'm here to assist you anytime so feel free to contact me
my name is David Modell and you can contact me at David Modell @ gmail.com
so happy investing and i hope to hear from you in