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Originally Posted by lewdog
That's not true. A trend line connects two or more points. That line is more so showing you how far each capitulation fell. It can help you estimate where we would fall to if capitulation (quick selling all at once) happens in this current bear market. We could fall to near 300 if using that trend line. I'm not asking anyone to guess, just showing you where we are at and what could happen. I think it's also interesting to note just how high this market is compared to 2009 levels.
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The way you draw a trendline is by starting on the Lefthand side of the chart and drawing the line towards the right. The rule of thumb is that a trend line must be drawn through at least three ‘swings’ in the price to be valid.
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Not really a hill I’m willing to die on, but that’s what I’ve always seen.
Yeah it really is remarkable how high it is. It looks horribad on a short term chart but barely a blip if you move it back even 10 years.
But then on a %loss basis this is one of the bigger price moves. Who the hell knows.
I kicked in some extra to a IRA, thinking the timing was good. It may very well not be. 300 looks as good as anything I can come up with.