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ICFX
Apr 21, 2020 7:03 PM

Dow theory basics Education

Australian Dollar/U.S. DollarFXCM

Description

How to identify trends and trend changes.

In downtrends - trendlines must connect the descending peaks - left to right
In uptrends - trendlines must connect rising thoroughs - left to right

"Trend is your friend unless it ends"- T. DeMark:)

GOOD LUCK!

Comment

FOR UPTREND TRENDLINE GOES ONLY BY LOWS
FOR DOWNTREND TRENDLINE GOES ONLY BY HIGHS

Both DeMark and Sperandao strictly follows this STRICT RULE
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Trendline must connect 2 lows (highs) BEFORE THE MAJOR HIGH (LOW) and it can NOT cross price between those 2 points V. Sperandao

It is POSSIBLE that trendline will go THROUGH PRICES PAST THE HIGHEST CONNECTING LOW POINT. In fact, this is one indication of a change of trend. - V. Sperandao
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Trendline must connect 2 MOST RECENT major lows (highs) - T. DeMark

Trendlines must be drawn from LEFT TO RIGHT ONLY (AS RECENT PRICE ACTION IS THE MOST RELEVANT)- T. DeMark

Comment

Has to be "RIGHT TO LEFT ONLY". Sorry:)
Comments
ridge1967
THanks
Miketinkle
Great
kennypilanski
Thanks
GoldCartel
Enjoy!

ICFX
@GoldCartel, For me this setup would be invalidated due to trendline break and close below the last higher low. What we saw today was a retest of a high. Price did not close above lower high. On the top we simply reached weekly value zone roof CAMR3 where price turns. Horizontal levels are not enough friend, you have to watch market structure.
GoldCartel
@RomanZachary, Thanks for sharing your insights! Currently, I'm still holding a few long positions, I will act accordingly later if needed.
GoldCartel
@RomanZachary, But I agree with your lower-low analysis, that's very possible
GoldCartel
@RomanZachary, Good luck trading this week bro
ICFX
@GoldCartel, Thank you!
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