Introduction To Trendlines

Trendlines are different from support and resistance and they help us understand different situations and also time our entries as we will see later. Trendlines are a great multi-purpose tool and when we learn about the third pattern, there will be a whole video series about trendlines alone.

Let’s recap:
▪ A trendline needs at least 3 touch points to be confirmed
▪ Usually, we draw trendlines using the candle-wicks and not the bodies
▪ During a downtrend, we draw trendlines connecting the highs
▪ During an uptrend, we draw trendlines connecting the lows
▪ To find transitioning points, we wait for the break of a trendline