How to draw a good Trend Line .?
Updated
(SCANNING TRENDING SCRIPS)
1) First, find a trending stock where , price moving up or down in a swinging fashion, like higher swing highs higher swing lows for up trend and lower swing lows and lower swing highs for down trend.
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(FILTERING OUT THE IMPERFECT TREND LINE)
2) At least three touches ,I mean touches without crossover. If you making a trend line by connecting swing lows then price should not be traded both the side price should be at left side of the trend line only that is the core concept of trend line.
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3) Check the distance between touches the distance between consecutive touches should not very too much.
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4) (SLOPE)
The slope of trend line should not be very steep. Flat trend line is okay but very steep trend line is not a good trend line.
Note: the trend lines are not very different from Support and resistances , The concepts apply to them is exact same just with one difference is that they are "TILTED". Trend lines also called tilted support and resistance.
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The more you practice the more you get the grip.There are some trend lines ideas I shared where you can observe how price behave at trend lines.
Examples:
1) First, find a trending stock where , price moving up or down in a swinging fashion, like higher swing highs higher swing lows for up trend and lower swing lows and lower swing highs for down trend.
-------------------------------------------------------
(FILTERING OUT THE IMPERFECT TREND LINE)
2) At least three touches ,I mean touches without crossover. If you making a trend line by connecting swing lows then price should not be traded both the side price should be at left side of the trend line only that is the core concept of trend line.
-------------------------------------------------------
3) Check the distance between touches the distance between consecutive touches should not very too much.
-------------------------------------------------------
4) (SLOPE)
The slope of trend line should not be very steep. Flat trend line is okay but very steep trend line is not a good trend line.
Note: the trend lines are not very different from Support and resistances , The concepts apply to them is exact same just with one difference is that they are "TILTED". Trend lines also called tilted support and resistance.
==========================
The more you practice the more you get the grip.There are some trend lines ideas I shared where you can observe how price behave at trend lines.
Examples:
Note
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