Higher highs and lower lows: what's your precise trend definition?
"The trend is your friend" until traders argue about what the trend is. Higher highs and higher lows is the standard, but the details — which swings count, on what time frame — decide everything.
Define yours:
- the swing definition you use to mark highs and lows
- the time frame that governs trend direction for you
- how you handle overlapping swings in choppy markets
The trend lines guide formalises structure drawing.
Background: Trend lines and price channels: how to draw them and read a break
A trend line connects rising lows or falling highs. This guide covers drawing trend lines consistently, adding a channel line, and what a break does and doesn't tell you.
How many points do you need to draw a trend line?
Two swing points define the line. A third touch that holds gives it more weight, because it shows other traders are reacting to the same line.
Should trend lines use wicks or candle bodies?
Either can work, as long as you use the same method every time and don't redraw the line to fit each new candle.
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