How to draw trend lines?
To draw a quality trend lines, you’ll need to find at least two swing points, and connect them together.
Levels should be clear, don’t try to impose a trendline. Don’t use a smaller time frame to draw trend lines, always use 4H and daily timeframes to find clear trend lines.
We will now try to focus on how to attract them in the directional markets, and our aim is to determine the beginning of the impulsive movements in the trending market.
In the next chapter, I’ll explain in detail how to trade trend lines along with the price action trading setups.
Watch an example of how to draw trend lines in a downtrend market.
As you can see, the market respects the trend line, and when the price approaches it, the market reverses and continues in the same direction.
When the market moves in this way, trend lines help us anticipate the next impulsive movement with the market direction.
See another example of an uptrend market.
As you can see, the market respects the trend line, and by drawing it the right way, we can easily anticipate the next upward move. That’s all we can say about the traded markets, I think it’s clear and simple, now what I want you to do is open up your charts and try to find trending markets.
Look for previous swing points (support and resistance) and try to find trend lines as well. This exercise will help you understand how trending markets move. How to predict high probability entries in the market.
