Forum Archive Index - February 2003

[Phaedrus <Phaedrus@techemail.com>]

Ted,
    Have you waded through the TA section of ShareChats "Learning to Invest" 
series? Part of it covers trends, and some of your questions are answered there 
:-
http://www.sharechat.co.nz/archives/2001/06/msg00514.shtml
 I will re-attach the CSL chart with a few extra annotations, which should make 
things a little clearer. You are quite right when you say that by looking at 
shorter timeframes, different trendlines are generated. These are the secondary 
trends, whose reaction highs and lows make up the primary trend - the one we 
are trying to trade. These secondary trends can be further broken down into 
short-term trends, whose reaction highs and lows make up the secondary trend. I 
haven't marked any of these on the chart because they would clutter it up, 
obscuring the important things. These secondary trends are, in theory, 
tradeable, but as I have said many times, when you get nice clean linear 
long-term uptrends such as you see here, it is pretty much impossible to beat 
simply buying and holding, so long as the long-term uptrend is still intact.
 Anyone following the rules and conventions of drawing trendlines would have 
drawn them exactly as I have. There is simply nowhere else they could go on 
this chart.
 I hope I have answered your queries adequately - if not, sing out.

       Regards,
                   Phaedrus.

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