Timelines

A price Line on a chart is drawn as a horizontal line through the specific price or indicators’ levels. In technical analysis, price lines also are referred to as signal lines, price levels, etc. In most cases, the price lines are used to mark critical price levels at which a trader plans to consider closing or opening a trade, setting a stop-loss, etc.

In most cases, when a price line is plotted on an indicator, it is considered to be a signal line. The signal to traders is given when the indicator crosses over this signals line. 70% and 30% of the lines on the RSI, as well as 20% and 80% of the lines on the Stochastics are examples of horizontal signals line that are used to generate buy/sell signals.

A timeline is another type of line that is often used in technical analysis. Timelines are used to tie price bars to indicators’ readings at specific points of time. Another use of timelines is to separate specific time periods - to separate waves to mark signals that are generated by indicators by tying them to the stock's price.

Cycle Timelines are a type of timeline that is drawn many times through a specific period of time. Fibonacci timelines are an advanced version of the Cycle Timelines where the lines are draw through a specific interval that is defined by the Fibonacci numbers: 23.6%, 38.2%, 50.0%, 61.8%, etc. In technical analysis, Cycle Timelines and Fibonacci Timelines are used mostly for wave analysis.

Chart 1: NASDAQ 100 chart with Price Lines and Timelines

Chart 2: NASDAQ 100 chart with Cycle Timelines

Chart 3: NASDAQ 100 chart with Fibonacci Timelines

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