How to draw & interpret trendlines correctly

In this video, I am going to show you how to draw & interpret trendlines correctly. You can apply this method in any timeframe and instruments such as forex, stocks, futures, bitcoins, bonds, etc…

In an uptrend,a trendline connecting two swing low and act as support, which is also called demand line. In a downtrend, a trendline connecting two swing highs and act as resistance, also called supply line. So, always buy near the support and sell near the resistance to have an edge in trading.



First, we need to define the timeframe we are trading. If we trade on daily chart, we can draw trendline in the daily timeframe. If we we use to trade in H1 timeframe, draw the trendline in the H1 timeframe. 

One important thing is that once the trend line is violated, we need to adjust the trendline accordingly to fit as many swing low/high as possible.

A break out from the trendline means there is a change of the pace in the trend. We can look at the trendline as a gradient. A steeper trendline means the price travel at faster pace than a less steep trendline.