Auto Trend Lines
Auto Trend Lines is a tool designed to automatically identify the existing stock price trends visible on a chart. The tool uses
Your choice of the number of pivots points and number of lines to draw determines the actual number of trend lines you will see visually displayed on the chart. The system will limit itself to only displaying the number of trend lines it can identify from any particular pivot point. Therefore, if you selected five lines from pivot point, but the system only identifies two possible trend lines, it will limit its display to only two trend lines.
Auto Trend Lines in Practice
Auto Trend Lines will have their limitations depending on the settings you use. When setting up Auto Trend Lines it may be helpful to adjust and apply settings multiple times until you find a setting that you think best defines the trend. You can make adjustments and view changes without having to close out of the settings window. Once you have located the settings that best match your needs the charting service will automatically add suggested trend lines to chart to help you more quickly identify new trading opportunities. During up and sideways trends the trend line will run along the bottom of the price movements. Good entry points would be areas when the stock price is relatively close to the trend line. Exit points are considered areas where the stock price falls below the trend line. During down trends the line will run along the top area of price movements. Areas along the trend line are considered good entry points for short sale transactions. Exit points from short transactions would be defined by areas where the price moved above the trend line.
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