Welcome to the inner circle. You have likely seen trendlines drawn on charts before—simple diagonal lines connecting dots. Most traders treat them like training wheels: something to use until they learn "real" indicators.
: If a trendline breaks, don't chase the move. Wait for the price to return and "test" the other side of the line before entering. trendline trading strategy secrets revealed 21 full
: Use multiple time frames to draw trendlines, such as 4-hour, daily, and weekly charts, to get a more complete picture of the trend. Welcome to the inner circle
The common wisdom says you need three touches for a valid trendline. You only need two touches to draw it, but you need the third touch to trust it. However, the real secret is the angle . If your trendline is steeper than 45 degrees, it is parabolic and will fail. Shallow angles (25-35 degrees) last the longest. : If a trendline breaks, don't chase the move
Place your stop loss slightly on the other side of the trendline, accounting for the Average True Range (ATR) of the asset. A tight stop right on the line is an invitation to be stopped out by a wick.