TRENDLINE AND ITS VALIDITY

gENTS,

pLEASE LEARN FROM OTHER BLOGGERS

http://www.atradeaday.com/2007/11/06/how-i-trade-support-and-resistance/

Validity of trendlines-(in other words dynamic support lines)

http://blog.afraidtotrade.com/assessing-the-validity-of-trendlines/

There are three simple ‘tests’ one can run to assess the significance or validity of an approaching or drawn trendline:

1) Number of Times Touched MORE TIMES,BETTER
2) Angle of the Trendline LOWER THAN 45DEGREES,THE BETTER
3) Length (timeframe) of Trendline LONGER THE BETTER
(Trendlines that develop on a weekly chart are far more significant (likely to hold) than those that develop on a one-minute chart)

Also see how you can use hammer as a guideline at link
see the chart
http://www.atradeaday.com/2007/10/11/how-to-trade-hammers/



Another way of trading support zones
http://www.atradeaday.com/2007/12/12/trading-bases/

Learn from charts
find support from previous lows and trade them
http://www.atradeaday.com/2007/12/18/top-5-trading-ideas-for-1218/