are they ?"
- They are trend lines
constructed by a complex math formula.What the formula
tries to determine is "the best fitting line of the
moment in time"
"score" value (the box with the number in it by
the trendline) is an Error output, this means that Zero
is a perfect trend line (no error) and 3,000 is a bad
trend line because it has a large error. As this is VERY
new, the score formula is not an exact science. Until we
perfect this formula scores are more of an approximate
value than an exact value. Please be patient while we get
this score tolerence improved.
"How can I
trade them ? "
There are basically two ways
to play trend lines.
- You can play the range inside the lines.
This is called swing trading. You hold stocks from 2 to
14 days in most swing trades. You should make sure the
range offers you the risk / reward that you desire. Stop
losses are nomally set at or above the support line (if
you were long).
- You can
play outside the lines.These are called break away or
break out trades. Gaps make break away trades better
quality, especially if the prices gap through the trend
line. Remember bigger gaps mean you missed some of the
move (more risk to enter).
- "Ooooh thats cool whats next ?"