Trendlines are one of the most effective ways of determining the strength of a trend. Based on the trendline, traders can observe the number of times the market tests the trendline and how it tests will know whether the market is strong or weak.

But the trendline only exerts that power when it is drawn correctly. Your judgment is correct or not, you find opportunities or get stuck in the wrong setup depending on how you draw the trendline.

DRAW TRENDLINE IS MUST BE ATTENTION TO MONEY CLOSE, MAJOR OR COUPLE

When drawing on the trendline or drawing resistance/support, the first problem you must pay attention to is not the bottom at all, but the currency pair you are drawing. Sound strange, right? Because the difference between currency pairs is that there will be those with higher liquidity and lower liquidity.

High liquidity pairs like EURUSD, GBPUSD, AUDUSD, ... tend to test trendline better than others.

However, that doesn't mean you can't draw trendlines for less liquid crosses like EURGBP or EURAUD. Here, we are only talking about probability.

This means that in order to get the most accurate probability when drawing the trendline, I would choose the main pairs: EURUSD, USDJPY, GBPUSD, USDCHF, USDCAD, AUDUSD, NZDUSD.

On a side note, although USDCHF and USDCAD are also considered as the main pair, in my experience we have to be very careful with these two. This is a pair of traders who beat up with investment.

Particularly pairs with JPY such as AUDJPY and NZDJPY, the trendline drawing is quite good.

At the end of the day, the liquidity of the pairs usually drops. The most liquid pairs will move in a direction that is conducive to trendline use. Why do you write? Because low liquidity pairs are often subject to big boys manipulating prices for a short period of time, resulting in trend distortions and trendlines no longer working.

SAVE UP TO THE COLLECTION!

A common mistake in drawing a trendline is that traders cut the end of the candlestick. But the tail is a very important part. For example, you will avoid a false breakout by paying more attention to the tail of the candle (shadow). Here is an example:


The trendline in the above example ignored the candle's tail (red circle), so when the price breakout, is that breakout real or is it fake? God knows.

Instead, we should draw like this, and you'll see how effective it is:


You see, the price has not yet breakout, it is only testing the trendline, thus, it proves that our trendline has been drawn correctly, because it is true, it tests right there.

THIS WILL HAVE EXCEPTIONS

Technical analysis is more of an art than a science. Therefore, it will also have exceptions.

This time, don't draw the trendline at the bottom of the candlestick anymore, but at the closing and opening prices:


Because we have a different way of drawing, and this drawing will take precedence because its accuracy is higher than drawing from candlesticks. That is to define the price channel:


Notice that in the previous up wave there are two peaks. We will draw a resistance trendline from those two peaks. Then, draw a support trendline below from the lowest bottom and parallel to the upper trendline. Thus, we have drawn a price channel, this price channel will act as a solid upper and lower boundary for the wave.

If the price crosses one of the two bands, it will go very strong.

CAN INDICATOR HELP YOU DRAW BETTER TRENDLINE?

Use 10-period EMA and 20-period EMA. But not to find entry points. Use it to calculate the average range of prices at frames D1 and W1. That's all.

The average area is a cloud made up of two EMAs. That cloud will be the basis for most accurately determining that your trendline is about to draw.

If anyone is not sure about the moving average cloud, please see this article.

The above are methods to help you improve your trendline drawing. You can apply whichever way you believe most. It is also possible to flexibly combine all the ways.