Shardy's Day Trading Journey - Day 7 - Power of Trend Lines

Not an exciting day at the market today, as it did continue further down but mostly sideways. Talk of the day is obviously Facebook which we don�t want to concern ourselves with.

I want to re-illustrate what I am trying to accomplish with trendlines. Even in a boring day there are still great trades to be made.

You will notice on the chart we are still using our parallel downtrend lines from the previous days. The first trade should have been off of the first red arrow. Your stop would have been just above the trendline incase it broke out but instead it went way down to the blue arrow which could have been a buy. I would not have done the buy at the blue arrow mainly because I was waiting for it to touch the trendline again. Also, the same thing happened at the second red arrow for a sell but again my order was at the trendline so I did not get in.

This is the power of trendlines and being patient for the market to get them. Have a wonderful weekend!