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Dynamic Chart Analysis - VII
3. Projective lines:
Begin with the basic drawing lines on the graphs of prices. We have provided a guideline that bullish line can connect two or more points of minimum and rising bassist will have a guideline that provided a line two or more peaks on downwards. These lines must remain in the chart and observe the following: if upward angle to see prices go up and down within that period it has its guideline. So as you may appreciate in one direction and the other trying to stay in a constant angle. In one example we'll hike the prices go up in a vector than a 45 ° angle, taking into account price and time axes and down doing a sort of zigzag at a right angle which tends to coincide with a perpendicular line drawn from guideline to the price.
Difficult to understand? Here then appears USD / JPY in 4 hours and see how it works in practice:
This simple technique will give us prices where prices must break the trend line or fall back in the direction of the trend. Remember that the more extended in time are based on a guideline in a corner of 45th and the angle is more difficult to break a trend.
