Trend Lines .

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Trend Lines

❖ Trendlines are rare and are strong (Spotted in a trending market)

❖ It is drawn using Higher Lows in an uptrend
❖ It is drawn using Lower Highs in a downtrend
❖ A good trendline has maximum multiple points touching it both
wick and candle body combined
❖ A trendline can be drawn using a minimum of 2 points
❖ Consolidation after uptrend = Distribution
❖ Consolidation after downtrend = Accumulation
❖ Consolidation often gives good breakout movements
❖ A trendline created on a 1-hour timeframe will work slower
compared to 5 minutes
❖ Look for Lows in an up-trending market and look to BUY
❖ Look for Highs in a down-trending market and look to SELL
❖ TYPES OF TREND LINE:

1. UPTREND LINE
• An uptrend line has a slope (upward) and is formed by
connecting two or more low points.
• Uptrend lines act as support.

2. DOWNTREND LINE
• A downtrend line has a slope (downward) and is formed by
connecting two or more high points.
• Downtrend lines act as resistance

1. How to Draw a Trend Line

• The very first thing to know about drawing trend lines is that
you need at least two points in the market to start a trend line.
• The two points can be either support or resistance. From that,
we come to which trend it is following either uptrend or
downtrend.
• The lows used to form an uptrend line and the highs used to
form a downtrend line should not be too far apart, or too close
together
• Important is getting the most touches possible without cutting
through the body of a candle.
• The higher time frames will always produce the most reliable
trend lines like 1h, Weekly, Daily, etc.

NOTE THAT AT LEAST TWO OR THREE POINTS MUST BE

CONNECTED BEFORE THE LINE IS CONSIDERED TO BE A
VALID TREND LINE.

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