Trendlines Tips

Uptrend Chart

Downtrend Chart

• The more times a stock touches a trend line, the more significant it becomes.
• It takes two touches to draw a trend line, but 3 to confirm it as being a valid one.
• In a down trend, draw the line along the highs of prices.
• The steeper the trend line, the less reliable it will be.
• A trend line break does not mean that the trend will change.

Drawing trend lines is an art form. Everyone has their own way of drawing them. There is no perfect way to draw them and it seems that no one can agree on the best way! Mastering the art and will find that the trend will more likely on your favor.

Even trade based on trendlines could make a profitable trading but don't just buy a stocks just because it is hitting the trendline. They are just a piece of the puzzle.

Happy learning!