Generally, it is the closing price that’s the most important. Regardless whether it’s trend line or horizontal support resistance, I would suggest that you focus on the closing price. Unless there are very minor, one situation for example, where you have already drawn a line, where it’s bounced off that trend line for example for many times before, and then let’s say on the fifth occasion the intraday low touched that line and then it bounced off and closed higher, then actually you are taking that low of the intraday, because the low happens to be on that trend line. What I’m saying is that the low, the intraday low or high, is only more important if the intraday low or high happens to be at a point where there is a key support or resistance level, whether it’s a trend line or horizontal line. You get my point?

Yeah.

That will only be depending on how long ago the line has been established. But if you are talking about a brand new uptrend line that you are trying to draw, then focus on the closing price rather than the intraday low.

 

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Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile

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