Traders' Roundtable

Referring to following image, there are 2 trend lines,
Does anyone have any suggestions on how to select an right bottom to draw a trend line? so I would draw trendline[1] instead of trendline[2].

Thanks in advance for any suggestions

http://i1093.photobucket.com/albums/i43 ... ndLine.jpg

oem7110 wrote:Referring to following image, there are 2 trend lines,
Does anyone have any suggestions on how to select an right bottom to draw a trend line? so I would draw trendline[1] instead of trendline[2].

Thanks in advance for any suggestions

http://i1093.photobucket.com/albums/i43 ... ndLine.jpg

I really don't think you can define an absolute rule for picking a "right" bottom, as "right" isn't a constent. For your picture, the simple thing is to pick the one with the lower start point.

According to Edwards and Magee, you want to connect the lower extremes of the Minor Recessions, within an uptrend.

pick a set of rules, use them consistently and then apply them to the appropriate set of data you are trying to trend line trade from....
as mojomojo says- there is no right