The Brian Dolan Line

For the other Brian Dolan fans out there, I recently named a trendline after him! I've learned so much from him really - such a modest gentleman.



Anyway, I've been following his webinars for a while and have noticed that he draws out lots of ever-flattening or ever-steepening trendlines. The trendlines on his chart usually then end up looking like a peacock or a fan.



The idea is to first draw out a major trendline that the market seems to be respecting at the moment. This would mean that there are lots of points touching that trendline, but never breaking it. You would then look for minor trendlines that are forming. If it's an uptrend, the minor trendline would need to be above the major trendline. If it's a downtrend, the minor trendline would need to be below the major trendline.



If price action fails to touch the major trendline, then this means the current trend continues to be strong.



It's such an interesting and compelling concept. Here's an example of one of the applications. You'll notice that price action broke above the Brian Dolan Line, after which prices started moving counter-trend with a lot more momentum. If I find a better chart example, I'll repost.