To a trend follower, the answer would be yes. The price channels clearly show any entry and exit levels, as well as the direction of the trend.
Moreover, the charts would mean that you could concentrate solely on entering new positions (by placing orders to open at the relevant levels) or by updating your stops as required, if a trade starts moving in your favour.
Charts like these would also mean you could avoid fretting over any small move for or against you. The candles denoting price movement are treated purely as noise, and therefore removed. You simply let the trades (and the trends) play themselves out.
If you struggle to stick your entry or exit methodology, then looking at charts like this may help you.
nice post. reminds me of Michael Covel talking of being on a desert island getting just 52 messages a year - the weekly prices.
ReplyDeleteThis seems like a brilliant idea. Less is definitely more in this game and so much is indeed just noise. With regard to the current price do you have to read it at the top of the page or could you have it on the right hand side where the moving average values are?
ReplyDeleteIt doesn't matter. When it comes to pure trend following, you want to avoid cutting your winners early at all costs. Once you are in a trade, then the only price level that matters is your trailing stop. In theory, all you need do once you are in a position is update your stop as required, based on your rules. That way, you let the market take you out of the trade, and you avoid trying to time your exit. If you do that, you may feel smart for a day or two, but you could quite easily feel dumb a week or two later when price takes off in the direction you wanted, with you on now left on the sidelines!
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