10 things to know about trend lines :
1- They connect two candles minimum. But more is always better, because the more candles there are, the stronger the trend.
2- They can be of 3 types: bullish (pointing up), bearish (pointing down), directionless (drawn horizontally).
3- Trend lines can be traced either on the closing price or on the candlestick wicks. It is up to the trader.
4- They can be visually represented as a line or a zone.
5- When two parallel trend lines are drawn on either side of the same candle, you get a channel. It is a 2D representation of the trend.
6- A trend line is invalidated when it is broken by either the wick or the close of a candle.
7- There are many possible trend lines. The objective is to identify the most relevant of them. The ones that will best predict the price movement.
8- Trend lines can form graphic figures. Each of them will have a specific meaning.
9- Trend line analysis is not 100% reliable. Each trend line has its own probability of success or failure.
10 - The effectiveness of a trend line evolves with the passing of time. It is necessary to constantly update them to remain in phase with the market.
1- They connect two candles minimum. But more is always better, because the more candles there are, the stronger the trend.
2- They can be of 3 types: bullish (pointing up), bearish (pointing down), directionless (drawn horizontally).
3- Trend lines can be traced either on the closing price or on the candlestick wicks. It is up to the trader.
4- They can be visually represented as a line or a zone.
5- When two parallel trend lines are drawn on either side of the same candle, you get a channel. It is a 2D representation of the trend.
6- A trend line is invalidated when it is broken by either the wick or the close of a candle.
7- There are many possible trend lines. The objective is to identify the most relevant of them. The ones that will best predict the price movement.
8- Trend lines can form graphic figures. Each of them will have a specific meaning.
9- Trend line analysis is not 100% reliable. Each trend line has its own probability of success or failure.
10 - The effectiveness of a trend line evolves with the passing of time. It is necessary to constantly update them to remain in phase with the market.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.