The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about the failure of trend lines when trading. There’s two things that we can talk about really on today’s call. First, there’s just the technical failure of a trend line, so this idea that if you draw a trend line on a chart… And many people draw them all over the place, so you can just search trend lines on Google and you’ll find a bunch of them for different stock charts. That when you draw a trend line, what you generally want to see if the trend is going to break is a massive and hard break of that trend line. If you have a very nice upward sloping trend line for say Apple stock or Tesla or the markets and then you have a massive down day that pierces through that trend line and closes well below the trend line, that would probably assume that that trend line has now been broken. Now, the other side that we have to talk about is just generally, the failure of trend lines because th