Markets don't only move sideways. When they trend, support and resistance tilt. Enter the trendline.
How to draw them
- Uptrend: connect at least two higher lows and extend the line right.
- Downtrend: connect at least two lower highs.
- A third touch confirms the line is real.
Pro tip
Be consistent: draw through wicks or through bodies, not a mix. And never force a line through candles to make it fit.
Using trendlines
In an uptrend, the line is where you look for buys on pullbacks. When price closes clearly below it, the trend may be tiring.
Wick says
A trendline is like a friend's promise. Two touches: nice. Three touches: now I trust you.
Rookie mistake
Redrawing the trendline every time price breaks it. If it broke, it broke.
Key takeaways
- Uptrend lines connect higher lows; downtrend lines connect lower highs.
- Two touches draw it, three confirm it.
- A clean break is a warning, not instantly a reversal.