Trendline Trading Practice
A trendline turns a series of highs or lows into a single diagonal you can trade against. The skill is drawing the line the market actually respects — not the one you wish were there.
An uptrend line connects a series of rising swing lows; a downtrend line connects falling swing highs. The line acts as diagonal support or resistance. Traders watch for bounces off the line in the trend’s direction and for a decisive break that may signal a shift.
How to spot it
- ✓ Need at least two clear swing points to draw the line, three to confirm it.
- ✓ Connect the lows in an uptrend, the highs in a downtrend.
- ✓ A line touched more times and not yet broken carries more weight.
- ✓ Bounces off the line in the trend direction are the higher-odds setups.
- ✓ A clean close through the line warns the trend may be changing.
⚠️ Common mistake
Forcing a line through prices by ignoring the touches that do not fit. A trendline you have to bend reality to draw is not a level the market is actually respecting.
FAQ
How many touches make a valid trendline?
Two points define a line; a third touch that holds confirms it is meaningful. More touches generally mean a more respected line. This page is practice, not advice.
Should the line touch wicks or closes?
Either approach is used. Many traders draw to the wicks for support/resistance and to closes for a cleaner trend read. Pick one and stay consistent.