How to Draw and Trade Trendlines Effectively

Trendlines are diagonal lines connecting higher lows (uptrend) or lower highs (downtrend). They represent dynamic support/resistance and help visualise trend direction. Despite their simplicity, they're one of the most powerful technical tools when drawn correctly.

• Uptrend: Connect at least 2 higher lows — extend the line right
• Downtrend: Connect at least 2 lower highs — extend the line right
• The more touches without breaking, the stronger the trendline
• A break of the trendline signals a potential trend change
• Don't force-fit — if the line doesn't touch at least 2 points cleanly, it's not valid

• Bounce: Enter when price touches the trendline and shows a reversal candle — trade with the trend
• Breakout: Enter when price breaks the trendline with volume — trade the new direction
• Retest: After a breakout, wait for price to retest the broken line from the other side — high-probability entry

• Drawing on too short a timeframe — use 4H or Daily for reliable trendlines
• Ignoring the body vs wick — decide whether to connect candle bodies or wicks and be consistent
• Redrawing lines to fit the market — if you keep adjusting, the line isn't valid

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