Market Analysis

Power Trendlines

Market action is heavily dominated by algorithmic trading and programs. Nothing new about that and it’s a reality of the market environment. In December algos were blamed for the steep sell-off, nobody is blaming them during the massive bounce off of the December lows. Funny that.

Irony aside knowing where these algos live and where they change direction is a critical edge to decipher in today’s markets. One of the key tools we use to keep a tap on them are trend lines and in this brief video (recorded January 8) I highlight some of the fascinating ping pong action we’ve come to observe and respect in markets.

Note: News cycles and events may be triggers, but trend lines often give you a destination and potential key turning points of support and resistance. And finding these ahead of time can provide a significant edge.


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Categories: Market Analysis

21 replies »

  1. Sven, as with anything you post it is very helpful and I would love to see any of these as often as you have time for. Jim Collins

  2. Thank you for taking the time to put this video together. It is very helpful to hear your thinking and analysis in deciding where to draw a trend line and how much to read into it.

  3. Really helpful video. Thank you for posting. I would readily welcome more like these to improve my technical knowledge. Thanks again.

  4. Really interesting – thank you. It would be great to see more of the same whenever you have the time and inclination.

  5. Excellent. Always helpful. Trend lines absolutely matter. The 2350 Xmas Eve low – I believe – marked the 10 year trend line off the lows from 3/09. Now that is a Power Trend line!
    Many Thanks.

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