This post, How To Use Trend Line Correctly! was originally posted here. The writer is a veteran community member on InvestingNote, with username known as Rayner.
Trend Line is one of the most versatile tools in trading.
You can use it in day trading, swing trading or even position trading.
However, most traders get it wrong.
They draw Trend Lines looking like this…
I know I’m exaggerating, but you get my point.
That’s why in today’s post, you’ll learn:
- What is a Trend Line and how does it work
- How to draw a Trend Line correctly (that most traders never find out)
- How to use Trend Line to identify the direction of the trend — and tell when the market condition has changed
- How to use Trend Line to better time your entries
- The Trend Line Breakout strategy
- How to ride massive trends using a simple Trend Line technique
- How to use Trend Line and identify trend reversal