Extensions of drawn fan lines show you a cross of a upper / lower fan line in advance. 4H price candle hits a cross of a upper and a lower fan line extension and you have your valid entry signal. Primary and secondary confirmation of a valid entry signal gives you the go ahead to pull the trigger.
Sorry about the ignorant question, but to clarify…draw one set of fan lines from high to low, and another set from low to high…look for candle to cross into space between fan line extensions. If I am close, am I looking for a cross of 61.8 lines?
High
[B].[/B]
[B].[/B]
High
\ /
/[B]<-----Cross[/B]
/
Low
[B]. [/B]
/
/
[B].[/B]
Low
Draw upper fan lines from [U]a prominent[/U] high to previous highs. Draw lower fan lines from [U]a prominent[/U] low to previous lows. Extend those fan lines and wait for candle to hit a cross.
Subsequent rather than previous
Thanks…makes sense now.
The current “Stocks, Futures and Options Magazine” has an interesting article on trend lines, I’ve attached a link…
Is my definition of trend lines incorrect or what? On the first chart posted in that article only 2 of the lines I would consider trend lines. Could someone explain to me why I keep seeing people calling fan lines trend lines? The chart below shows all the trend lines can be drawn on that particular chart IMO.
You know the old story… one hundred different traders, and you’ll get one hundred different ways to draw trend lines! LOL 
Well I call them trendlines and so apparently does the author of the article but I have had my wrist slapped previously for calling them that? Perhaps the two your refering to are the upper and lower trend lines of the fan? But the middle ones can equally be called trend lines or fan lines in my book.
Glad I cleared that one up… all as clear as mud. 
By what definition would you consider the middle lines to be trend lines? Explain to me why you consider those as trend lines. How would you or anyone for that matter pick a trade from of those middle lines?
The overall direction of the trend in the illustration is down the direction of the lines are down. [B]Trend + Lines = Trendlines[/B].
By simply selecting the lower and upper trend lines you are defining a [B]Trend Channel.[/B]
But if it makes you and others happy… call it a fan line.
So whats the point of the middle lines? Base on what you said aren’t they irrelevant?
In the posted chart they seem somewhat irrelevant I agree but if you go to the first post on this thread I have put up a chart. This chart shows how PA will often obey the lines. Its just another tool… but projecting forward in time.
any update on this?
?
Hi,
How/where can I download the SSD indicator, I have tried a search but I have come up empty.
Thanks
Roman
I’m pretty sure the SSD, also known as the slow stochastic, is the same as the default MT4 stochastic.
Thanks for that.
Roman