Knowing how to draw Trend lines correctly is really important as it can improve your trades significantly, Trend lines shows the direction in which the market is heading both long and short term!

This is a video on trend lines for beginners showing the trend lines support and resistance, If you want to learn more about support and resistance, I have posted a video on price action on my channel!

5 Most powerful reversal candlestick patterns - [ Ссылка ]

Do check out the rest of the videos in this channel to see the easy yet effective trading strategies I use!

Transcript -
If you ask me what's the single most important technical analysis tool, I would say trendline.

And the best part about trend lines is not only they are important but also really easy to draw and interpret.

So let me show you how it's done

Today we are gonna learn 3 things about trendlines

1. Why are trend lines so important
2. How to draw trendline properly
3. How to use trendlines for taking trades - you are not gonna believe how easy it is to take trades using trend lines


1. Why are trend lines so important - and the reason is trend lines basically show you the direction in which the market is heading both and long and short term ...

2. How to draw trend lines properly -
The no.1 rule when trend lines is, It has to be obvious, if you have to squint your eyes, try and connect every possible point to see if any any 3 points are connecting ... Then that won't work ... Because the reason a trend line work is cause there are buyers gathered at the bottom trendline and the reason buyers are gathered there is cause it's trend line is clearly visible and they know other buyers have also gathered there so collectively their buying is going to shoot up the price.

Now moving on to how to actually draw them .. There are many traders who draw the trend line by connecting the candle but if you are a reversal trader it doesn't make sense as you can see if I would connected to the candle and entered here as a reversal trade it would have hit my stop loss .. Hence it's better to use the wicks as a connecting point.

Trendlines are stronger when there are more connecting points. Now in order for a line to even be called a trendline it needs to have minimum 3 connecting points, But the more the connecting points the better .. And if you do a little searching it's not hard to find a trendline with more connecting points, as they are worth it for they are more reliable.


3. How to use the trend lines for taking trades - You have trend line in place, you have your setup ready .. There is just one key element missing ... This one key element can make your trades go from 40-50% winning probability to 80-90% winning probability .. and that key element is reversal candlestick pattern, Now, if you do not find a reversal pattern at the trendline, do not take trade. You only enter after you spot the pattern is completed. It's better to enter 10-20 points late after a proper confirmation than to take enter early and take a 80-100 points loss.

To learn about the strategies I use I have plenty of simple and easy to understand videos that you can check out at my channel Wealth Z Trader

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