Submitted by lordinov t3_z92ww1 in wallstreetbets
No_Tbp2426 t1_iyerif7 wrote
Why isn't your regression line centered in the middle of the channel? Also we don't confirm breaking resistance until it retests. Only trade on it if it retests.
lordinov OP t1_iyeruks wrote
It’s no regression line, these are support and resistance lines during a downtrend
No_Tbp2426 t1_iyexqzt wrote
Your lines are completely off for a proper downward channel and regression line. Also, support and resistance should be lateral points in the channel that are historic points likely to cause change in trend.
lordinov OP t1_iyexydu wrote
U sure about that
No_Tbp2426 t1_iyf19bp wrote
Yes, look at the bottom there are other lines that follow way more points than the line you have drawn & same with the top. It is a visual representation of the average therefore the strongest line has the most points bouncing off/ around it. I would take the top line that has 4 points connected vs yours with 1 point. And I would take the bottom line ~5 points than yours with 2. In addition there is a shit ton of movement in the middle of this channel you're completely ignoring by not including a regression line. For the support/ resistance yours are actually pretty good. Also, remember things can break out of the channel and that is indicative of it trying to break trend.
erjkl737 t1_iyf50kc wrote
Don't tell me you are one of those flat earth "you need three data points for a trend" crazies.
No_Tbp2426 t1_iyf69by wrote
Don't tell me your stupid enough to think that something that is a continuing trend/ pattern isn't what you should be trading off of. Who said anything about 3? I said the more the better.
erjkl737 t1_iyf791i wrote
Sorry, didn't think I needed the /s. Have an upvote for the misunderstanding. Happy Holidays!
No_Tbp2426 t1_iyf7rmw wrote
Oops sorry! Much love lol happy holidays😂 normally I'd get it but in this subreddit you can never be sure haha
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