As everyone know, I only do short-term/DT.
In fact, Short-term trend line analysis is the same as other Technical indicators, just an indicator, period.
Now, I want to compare RSI with the Short-term trend line analysis. (This is not a trading set up, just a pure comparison). These couple of days, RSI gave 3 buy signals for SSO, with one wrong and two right. On the other hand, Short-term trend line analysis only gave one buy signal. In my opinion, it provides less trade and safer trade. Basically, I do not want to have too many trades, just less trade that have higher probability of winning.
In addition, I believe in win fast. Expose our capital as short-term as possible and got maximum return at that certain time, may be couple hours, three hours, 5 hours, or over night. The less time expose to the market, the less risk it will be. Of course, we should develop our own buying and selling signal, and one of the indicators that I use is the Short-term trend lines analysis. |