haka-chart chat, page-2

to continue [I realise you're in the UK,haka and can't reply to our daylight hours posts]

Anyway,Diagonal Trend Lines.

These are usually drawn touching only the Extremes ie Wicks for DownTrends and Tails for Up Trends.

This is just a Rule.One can draw the lines cutting thru the Tails'n'Wicks and taking in some Open/Closes perhaps.
One can also have Multiple Valid/3+Hit Confirmed Trend lines ie a Single Diagonal does not RULE out others.

The Main Thing about Diagonal Trend Lines IMO is that they are "Lesser" value than Horizontal Sup/Res Lines.
You'll find when you draw say a 6month period Diagonal Trend that it can easily appear to Falsely Break sheerly thru Geometry.

Usually the share price moves sideways and appears to Break the Diagonal.
See any text book about Break Out Definitions of Trend Lines BUT what I'm saying is that you should Primarily be Guided on a Resistance Break not the Trend Line Geometry move outside the trend line.
Do ya follow?
Share Price sideways may be Confirming Resistance Level while it moves past the Geometry Line showing DownTrend.It's that Resistance overcome that is the Break out not NOT going above the Diag.

Anyway there's Market Wisdom palaver about a Long Term Trend Break should be observed for 3 days or should exceed 5% price rise'n'fall before acting on it especially as a Stop Loss/Keep Profit Signal.That's mainly for if you've been on the share for awhile NOT if you've just entered.

There's also "stuff" about the ANGLE of the Diagonal.
45degrees and no sharper than 60ish or shallower than 30.
Sharper the Angle is,the more unlikely it is to maintain.

This philosophy is a bit poo pooed these days because people can change the Time Frame of their charts at a Button touch and thus pull the Angles into line however I still think it's Valid as Long as you measure it in a Fixed Time Period every time on every chart.

Anyway,that's enuf for you to absorb,haka.You'll find that the Simple Indicators of Horizontals and Diagonal Lines are the purist's preferred over all those High Maths ones.

cheers.