Top Pick Trading Forum

I checked 2019 tick charts with Mack's trend lines and trend channel lines. I found there are so many of these channels cutting through price bars. I don't know why sometimes this is OK. In my understanding, if a trend line has been cutting through, the channel is broken, then the new extreme means the trend has played out. If you allow the channel that has been broken to extend further right, then the trend can be still effective after break and new extreme. Below is an example for the trend line cutting through price bars.



Same things happened for the trend channel lines in those charts. With trend channel lines cutting through prices, the otherwise invalid channel will look more justified and possible overshot has been ignored. Below is an example.



I know Mack is an experienced trader so he must have reasons to justify that way of drawing trend lines and trend channel lines. Then what are the rules of thumb regarding drawing lines that cut through price bars? When can we draw such price bar cutting lines?

Thanks.

There are evaluative sequences which are happening in both of the charts based on context.

Please keep track of your questions here, as the entire evaluative process and how to read context and market state which needs to be built. The course works from the ground upwards, and please do the homework for each section (and it is a lot of homework). The amount of homework though is very helpful. Questions often are built from singular events. This may lead to sparse sampling of particular situations. Stronger is to understand how often things happen, through massive review of historical PA (beginning with the charts). This study will help to emphasize lower probability occurrences vs higher probability. Questions first end up being cleared with the higher occurring situations because of familiarity. The lower ones also often resolve through this study because while one may only see something .25-1x a month. Across a year, it may be seen and appreciated 3-10x. This is also why individuals who only "trade and study today", rarely make much progress at all. There is too much variation for 1 day at a time to cut through what needs to be learned.

A lot of homework and study, and I think you may end up surprising yourself if you take this process in pieces.

This answer maybe different than the one you were expecting. I'm counting on your description of yourself to follow through . There is great focus and benefit to some of the resources you have described. I'm putting them into action!

Good trades to you!