How to Draw Trend Lines
Basic Steps:
1. Identify Key Points:
- You need to identify at least two swing points in the market to draw a correct trend line.
- In a downtrend, connect consecutive highs with a downward trend line.
2. Clarity of Levels:
- The points should be clear, and the line should not be imposed if the points do not align precisely.
3. Appropriate Time Frame:
- It is preferable to use larger time frames like 4 hours (4H) or daily (Daily) for clearer and more reliable trend lines.
Practical Example from the Data:
- X-Axis (28 Oct - 15 Nov): Represents dates and times that can be used to identify swing points.
- Y-Axis (31 Oct - 18 Nov): Shows market movements that can be analyzed to draw trend lines.
Goal:
- Identify the beginning of impulsive moves in the trending market.
Next Step:
- Learn how to trade trend lines using price action analysis.
Note: The data in the second image contains dates and times that may be useful for a practical application of drawing lines.$SAHARA $LPT $SUI #trendline #Trendlines #trendlinebasic #TrendlineBreakout