The trendline is the most used tool when trading, but many traders still do not know how to draw a "correct" trendline. Actually, you get confused because there are many different ways to draw trend lines depending on how many candles you choose per draw.

To draw a trend line, you just need to answer the question: how many points will you need to be able to draw a line? If your answer is 2, congratulations on the correct answer. However, in order to correctly draw the trend line to determine the correct trend, you need to add another factor that is combining swing points on the chart together. Simply with an uptrend line, you will connect 2 swing low points and the trend line, you will combine 2 swing high points, that's all.


In the picture above, you can see that the numbers marked are swinging high or swing low points. By connecting these points, you get a complete trend line.

The market, after creating swing points, continually creates new swing points and gives us countless trend lines. To troubleshoot, you simply select the trend lines with 3 or 4 times the price touches like the trend line on the picture. Such a trend line is really called perfect.

Trend lines have many uses in the way you trade the market. The first use, of course, is to help identify trends. As long as the market remains below or above the trend line, the market maintains its old trend.

Use Trend line to help you hold orders longer in trend


Many Traders probably already know how to use the trend line as shown above. When you keep your orders on the trend line, you are more likely to make a bigger profit if you use short term exit tools such as Moving Average, ATR or simply keeping orders by a candlestick.

Use Trend line to find entry points


Remember that the original use of the Trend line was to determine the trend? Of course, when the Trend line is broken, it is the time when the trend will reverse, but often traders will use this way of entering with another support signal. For example, the figure on a chart is a combination of a trend line with a supply-demand area. There are also some Traders who will use other tools to combine with the Trend line such as using Heiken Ashi candles, momentum indicators like Stochastic, etc., but there are rare cases of using independent trend lines to enter orders.

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