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Trend Lines Still Not Staying At Price Level

DP
asked this on March 21, 2011 11:00

I didn't see a way to respond to the original response from Ryan so I will make a new post.

When I draw a trend line on say a 60 min chart then cycle thru different time frames the trend line will move to different price points even on the time frame used for the original draw, in this case a 60 min chart.  Today for example I had to adjust a trend line on a 240 min chart twice because it would not hold to the original price points after cycling thru several time frames.  I suggest you try this on a chart and test over several days using multiple trend lines.

 

Thanks

 

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Andrew Stoeckley
MarketDelta LLC
Ajax_loader_small Answer

Hi,

I am trying to replicate your problem. I put a trend line on a 60 minute chart. the starting and stopping prices and times were noted. I changed to a 240-minute chart. the starting and stopping times and the price points were the same. Of course the trend line did not look like the previous one since the price data between these points was now organized differently, in a 240-minute bars, rather than 60-minute bars. I changed to 15 minutes; same trend line, different bars. I changed back to 60 minutes, and the chart returned to exactly where it was where I began, and the trend line was identical.

If you can provide some screenshots that illustrate your problem, that might help. Please leave comments on this post rather than starting a new one. Use the Add a Comment box below, after you have logged in.

March 21, 2011 13:47
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DP

Hi Andrew,

It doesn't always happen the same day as the trend line is made on my charts that's why I suggested to monitor it for a few days.

The attached screen shot shows a trend line ( second blue line down ) on a 60min chart with first draw point starting on Fri. then second draw point on Wed., these were originally drawn at the tops of the candles and after switching back and forth between time frames several times over a couple days this is where they are now.

March 21, 2011 14:11
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Andrew Stoeckley
MarketDelta LLC
Ajax_loader_small Answer

Trendlines have two points...each identified by a datetime and a price.  When dropping down a tline on a 240m chart, it will attach itself to the ending times of those 240 min bars (and the respective prices).  Commonly you'll put it on a high or low.   If you then switch to 60-min chart, it will use the same price...but it will pin itself to the 60-min bar that matches the datetimestamp...which would be the last 60 min bar within the 240min bar.  For this reason, it's always best to originally drop the trendline on the lower periodiicty first, then it will retain proper position among periodicities much better.

 

However, this may not address his issue at all.  It may be that you have the trendline set to "attach to high/low". Is this the case?

March 21, 2011 14:52
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DP

Yes Andrew that's correct.

March 21, 2011 15:07
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Andrew Stoeckley
MarketDelta LLC

I would recommend you turn that setting off, as that setting WILL cause a trend line to change position as you change periodicities.

March 21, 2011 15:28