In an earlier report this week you mentioned about 30 trendlines on the Nasdaq. Is that normal? (May 18, 2000)
When we referred to those trendlines, we included several support and resistance lines as well. Further, they spanned the past three years. They were not all drawn in the past six months. We like to keep longer term support and trendlines on our charts just so we can see where the averages have gone, not to mention possible support in corrections such as the one we are in.
Some people do not give much credence to trendlines once they are over 6 months old. While it is true that they tend to lose value over long periods of time (some of the Nasdaq stocks have moved so far that trendlines from 1998 and even 1999 mean very little), we feel that they still can influence stock movement as they are approached. That is why we usually just keep them on our charts until they get too cluttered. Then we usually just start a new chart, keeping the old data for reference.
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