Offline Session ON Trendlines 9 $¢ Phoenix HarmonicWhat is Trendline? *A single trendline can be applied to a chart to give a clearer picture of the trend. *Trendlines establish a directional bias for price action which is maintained as long as price continues to respect that trendline. *When price breaks the trendline, either a retracement may be unfolding or change in trend. *Trendline analysis is the clearest and most accurate means of detecting and monitoring a directional bias because trendlines are based directly on price action itself. *The time period being analyzed and the exact points used to create a trend line vary from trader to trader. “Ifyour goal is to trade like a professional and be a consistent winner, then you must start from the py that the solutions are in your mind and net in the market.” — Mark DouglasUPTREND | DOWNTREND : E- Expansion : R- RetracementHow to Draw Trendline? *Always ascertain two successive Higher Bottom or Lower Top consider from Absolute Top or Bottom. *To create a trend line, an analyst must have at least two points on a price chart. *Trend line Connect Successive Two Higher Bottom then it is known as Uptrend Line. *Trend line Connect Successive Two Lower Top then itis known as Downtrend Line.i aly | yl “ il | :ey hi we | May ‘hyHow NOT to draw Trend LinesHere’s how to draw a Trend Line correctly... 1. Focus only on the major swing points and ignore everything else. 2. Connect at least 2 major swing points. 3. Adjust it so that you get the most number of touches (whether it’s body or wick)my Nail Swing Low 1 a y yy pee ayrow ail ‘ " jut ‘af ale, J t Swing Low 2 (Valid Trend Line) pana et i jan “ fyi ! ! | ul Swing Low 1pv | il i i yee ap Parallel Trend Lines act as an area of support hyeLimitations of a Trendline * Trendlines have to be readjusted as more price data comes in. + Choosing right data points to connect. * Trend lines applied on smaller time frames can be volume sensitive. * Atrend line formed on low volume may easily be broken as volume picks up throughout a session.Mh r ht , in Trend Line support * Horizontal ‘supportHammer reversal pattern + i" I af" W | ‘ Trend Line support + Horizontal supportPotential buying set-ups when candle breaks and closes above the Trend LinePotential selling set-ups when candle breaks and closes below the Trend Line Vie ’ 1, i Hy sti, ot hy . yO =‘ lt yi KA lif yi" I f wy ! fi i hehe yh hay? i im Mv Uiit “hl Wy ate "h ‘ ha 44 “I, | Ld Re-testela