Trend lines: how do beginners draw them properly?
A trend line needs two touches to exist and a third to matter, but beginners draw lines through random points and then trust them. The drawing rules are simple; the discipline is not.
Post:
- how you decide which swings to connect
- whether you use closes or wicks
- a time your trend line failed and what you learned
The trend lines and channels guide sets out the drawing rules.
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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