Hi twanyport,What is more important to consider in the use of...

  1. 1,268 Posts.
    Hi twanyport,

    What is more important to consider in the use of trendlines is the CONFLUENCE of trendlines rather than converging. Trendlines are great indicators and predictors of supports and resistances. Where there is a confluence or banding ie. coming together to form a band, the principle is that there is a band of resistance or support as the case might be indicated by the confluence or banding.

    As for converging trendlines, if they are gann lines or dynamic gann lines ( DGLs') and they are drawn from pivots, I would place importance on these converging lines drawn from pivots as they often indicate turning points. However, each gann line drawn must be properly scaled or optimised to scale. In fact, if you draw your major trendline and then draw what is commonly called a Mouteki trendline, you will get a converging or trendline intersection most of the time. I'm not aware of any great significance or particular significance of such intersections. Rather I would place significance on such a trendline intersecting with a major fibonacci retracement or extension level, as that will represents synergy- where we will see likely support or resistances.

    Hope this helps

    dascore
 
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