thread: Drawing Correct Trendlines

A lot of people have asked me how to draw a trendline through the past years, also sharing their concern about lack of proper knowledge about such an well-known phenomenon like trendlines. So I decided to discuss a set of principles in this thread that was how-to with focus on identifiion that was correct.

Criteria identifiion
Any trendline ought to be drawn through/connecting at 3 extreme points in your chart with no intersection to another side, not even by 1 pip. This goes for many time-frames but anticipate a follow-through that is larger on time-frame that is greater. Be aware that a break of a trendline lasted for several years usually results in a trend reversal (see aud/usd chart).

Strategy of action
There are two ways to make the most out of a trendline:

1. Either by buying/selling 5 pips before this trendline acting as support/resistance. Only valid when price is going for the towards the trendline.
2. Anticipating a break-out. The trendline has now four touches and price is going . A break-out takes place when price has broken by one pip.

Cease loss should always be placed outside the daily range. If price is further away than 40 pips, I bypass the scenario because of the stop loss.

Note of warning
A perfect trendline setup is quite rare and therefore don't expect it to happen once a day. You'll also discover that it requires some practice to have this right since conducting a relaying only on a single angled line is quite complied.
This is no holy grail and you ought to anticipate false break-outs to occur from time to time. This should not be problematic to get a trader if is used.

Hej Aediaz!

Excellent thread you launched here! Want strategy I have noticed on pair, TL includes several divergence. Lets see how it will play out after the break

P.s. only noticed that it took approximately 3 months to form it, and classical DOW concept tells that minor(near term tendency ) generally last less than 3 months.

Thank you. Fantastic eye, I was going to post this installment but than me lol, you appear to be quicker than

Hej Aediaz!

Excellent thread you launched here! Want strategy I have noticed on pair, TL includes several divergence. Lets see how it will play out after the break

P.s. only noticed that it took approximately 3 months to form it, and classical DOW concept tells that minor(near term tendency ) generally last less than 3 months.

Thank you. Fantastic eye, I was going to post this installment but than me lol, you appear to be quicker than

Same for EUR/AUD on 4hr. Goal @ 1.3350

Same for EUR/AUD on 4hr. Goal @ 1.3350

Hej Aediaz!

Excellent thread you launched here! Want to share some of the trend line strategy I have observed now on eur/jpy pair, TL has 3 touches yet some divergence. Lets see how it will play out following the rest

P.s. just discovered that it took approximately 3 months to form it, and classical DOW concept tells that minor(near term trend) generally last less than 3 months.

Got broken finally, I suppose everything worked exactly the way that it should, except that tinny fallse break Anyhow it would not very smart to sell on it, as the real fracture ussualy goes after a certain retracement among the lineup...

Hej Aediaz!

Excellent thread you launched here! Want to share some of the trend line strategy I have observed now on eur/jpy pair, TL has 3 touches yet some divergence. Lets see how it will play out following the rest

P.s. just discovered that it took approximately 3 months to form it, and classical DOW concept tells that minor(near term trend) generally last less than 3 months.

Got broken finally, I suppose everything worked exactly the way that it should, except that tinny fallse break Anyhow it would not very smart to sell on it, as the real fracture ussualy goes after a certain retracement among the lineup...

Same for EUR/AUD on 4hr. Target @ 1.3350

And 6 days after 1.3301

Same for EUR/AUD on 4hr. Target @ 1.3350

And 6 days after 1.3301

Here is an instance on GBP/USD;