Have you ever seen a chart with trend lines and wondered how that trader knew to draw the trend line perfectly? Or how they were able to create analysis based on the trend line? Well, if you ever thought that, you are not alone.
As a matter of fact, many traders have the same thought. See, trend lines are not hard to plot. They are not even hard to understand. What is hard to understand is why and when to plot the trend line.
Here is a little background about trend lines. Trend lines are a guide for trend. That is it. If you need help understanding trend, here is a video you can watch:
See, how I kept it that simple? Now that you know trend lines are a guide for trend, the next thing you need to know is that the timeframe you draw the trend line on is just as important. Keep this in mind, the time frame you draw your trend line on will produce different results. For example, if I draw my trend line on the weekly timeframe, I may be expecting a huge move may take weeks to fulfill. In this case, I may be a position or swing trader.
If I draw my trend line on the daily time frame, I may be expecting a decent move out of the market where I may be holding my trade for at least 1 week to 1 month. In this case I may be a swing trader.
Lastly, if I draw my trend line on the 4 hour, I may be expecting price to fulfill its move within the day or 2-3 days.
Do you see where this is going.
So, if you are ready to embark on the journey of learning how to draw trend lines, then here is a video design for you.
Comment below if you are the trend trader or counter trend trader and if you think you can use trend lines in the future to help you.
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