I think I'm with you Remo and I can see the earlier break. As LTV said more touches the better for the trendline (2 touches is not a line at all). From that point of view my trendline from March didn't look strong.

Shotry wrote:

Supplier IT finance charts....They are known to have errors on. I think they supply IG charts as well.

shotry.
The trend line that you have drawn is not actually the real trend line to focus on.
The real trend line did break earlier but since have gone sideways. When this happens ,then you may have to look for a new trend line to play of, hence why your trend line may become valid at a latter date. Hope that makes sense .

Remo

Many thanks for clearing this up.

“Longtermview. your trend lines are like how i do mine. Taking the extremes.” It’s because you taught me

I will try to include more of the chart.

Thanks Remo and LTV for the discussion.

Obviously not good that I have errors on my chart (as I said earlier this should be objective data so my supplier IT finance perhaps not so good). However, very interesting that you consider both trendlines as being reasonable. That implies a decent level of subjectivity in this case (perhaps a warning to be careful on this trade) and also highlights the importance of money management (stops/limits etc) to me.

Thanks again

Hi shotry and Longterm view

Shotry...Your charts seem to have some serious errors on it.which can distort your trend lines.
Your trend line looks right

Longtermview. your trend lines are like how i do mine. Taking the extremes.

So bottom line is , I think your both right as it seems you have 2 different areas where your taking the trend lines from.
I think shotry is taking it from the highest point which is not showing in his chart and longterm is taking it from july. So the levels are pretty close together. So if this can finish above 168 then bullish.
So you need to show more of the chart from back in history






DYOR

Thanks LTV, I'd really appreciate more input as I can see your reasoning very well and understanding the validity of the different trendlines could make a big difference to our results. I remain out of this trade for the moment. Spread isn't great at 3.5p ish.

I used July, as there were 5 touches. I believe the more touches the better the trendline.

I couldn’t match it up well enough from the March high.

This is where this website could become excellent in learning.

I dont know which trenline is more valid! Remo?

Anybody help would be appreciated?

I'll keep an eye on it LTV. Added to my POG position this morning as the chart looks v good.

I'm interested in learning how others place their trendlines, you've drawn yours from early July, whereas I'd put mine in from March, which might explain the differences between what we're seeing. I'd love to know which trendline was more valid? My chart looks a little different from yours (these kind of differences are worrying as this is supposed to be objective data), but if I draw my trendline from early July as you have I get a very similar picture? Would love input on this?

Shorty,

Had a quick look, i'm not sure its broken out.

Stops at 148 look good.

dl.dropbox.com/u/21384991/Gem%20Diamonds...1.12%20%28DFB%29.png

On my daily chart the RSI hasn’t broken out?

I would think you need a close above the daily trendline (blue). Around 168.4.

Targets 179 (hor) 196.91 (200ema) 199. horizontal.

Weekly suggests we're on the edge of a break up from a descending wedge (I've annotated the chart with stops/targets. Would very much appreciate others views

screencast.com/t/yMBMbwzEcc3j

Daily confirms the weekly view with a finish above 164 being bullish. I've annotated the chart. If it breaks up, then it might be reasonable to place stops closer to 160 than the 148 suggested on the weekly chart. If that's reasonable the risk reward is very good.

screencast.com/t/apmtJTaaj8b7