Open your mind. You are used to being shocked on this blog already. Take a deep breath.
What is a trendline?
A trendline is an indicator that represents the trajectory / vector of a motion at its extreme.
There are accelerating and decelerating vectors in combination with the underlying strength measured by RSI2.
Your expectation of the next attack on an accelerating vector to be touching / going beyond the vector and the expectation for a decelerating vector is that price is going to fall shy from it upon the next approach.
Implications: next time you see somebody drawing a line without making an attempt for determining if the vector is an accelerating or decelerating one, you get to roll your eyes.
Next time you hear somebody saying, that they don’t like / use any indicators, but heftily start engaging in drawing lines everywhere, you get to judge them for their absence of understanding.
Next time somebody tells you about their course on the 3 different kind of trendlines, you get to tell them: “F* Off!”
First, an hourly image to show the two colors.
Gold is a decelerating vector – if you don’t expect it to be touched again, yet price does just that, what do you do?
Midnight blue – it warns you abut the accelerating in buying / selling. It is a hint, that this vector is going to be exceeded with high likelihood, therefore you can keep adding to your position, the further you are from this axis, the better would be your reward.
& the 4-hour for good measure.
(the Khaki lines are continuation divergences – auto plots of the Overdrive 240 routine)
It’s only when I bruise myself with someone else…