Trendlines - Trading Software

Trendlines

Obuli Govindaraju
2012-07-07 16:37:49

I am looking to build a trading system using trendlines. So the buy rule will be something like if a High to High trendline breaks then buy.
Sell rule will be if low to low trendline breaks then sell.

I will buy more when there is a bullish candlestick pattern forms at the touch of a low to low trendline. Similar rule for sell as well.

Is it possible to create such a trading system? If so how do I programmatically draw trendlines and use it in simulation.

Juliettpapa
2012-07-07 18:05:25

What about using linear equations? ;-)

By the way: are you really convinced that one can write an automatic system using trend lines? Have never heard of that. Trend line trading is the godfather of dicrete trading.

Regards
juliettpapa

QuantShare
2012-07-07 21:46:13

Best Answer

You should take a look at the following article:
http://www.quantshare.com/sa-437-detect-chart-patterns-using-the-auto-support-resistance-indicator

To use trendlines in backtesting you should use "AutoSR(2, ...)" for support line and "AutoSR(3, ...)" for resistance line.

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