Hi,

When we draw trendlines for any chart, should we consider the lows of the day or the closing price as the joining points? Because there is a difference in the angle of the support & resistance line when we consider bar charts & line charts (which is made of closing prices).

Thanks.

If I am not wrong , we use low of the day/ high of the day while drawing a trendline for support/resistance.

The below link can help more understanding:

http://stockcharts.com/school/doku.p...is:trend_lines

Happy Investing!

Different analysts draw trendlines in different ways.

Highs/lows are the usually used for trendlines in bar charts.

In case of line charts, there are no highs/lows and thus trendlines are drawn based on the closing prices.

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1. Alchemist, which ones do you use among bar charts & line charts?

2. Which Moving averages (how many days) should be considered to determine the change in short term trend of a stock?
Ex. If 10 day Moving Average crosses 40 day moving average on upside, I read that it is a buy signal. If it crosses 40 day moving average on downside, it is a sell signal.
Some articles compare 50 day average & 15 day average.
Which one is preferable & does it vary among different stocks/indices?