(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. ------------------------------------------------------- (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.
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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:
informative post. but I don't agree with the point the price should stay to the left. Technical analysis is not a set of rules but a study of market participants behaviour. Be flexible.
TRADEWITHFUN247
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@Sai_Kumar you need to find what works for you that is it...
KINGSFALCONTRADERS
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@Sai_Kumar I also feel the same. Price and technical analysis no fixed rules but be flexible
TRADEWITHFUN247
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@KINGsKINGSHIP, Be flexible but little not too much , many time I saw people take their creativity to another level..... Hope you understand , very light line between being flexible with correct chart formation , and being flexible with distorted one.
KINGSFALCONTRADERS
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@TRADEWITHFUN247, A trader who is not flexible will perish soon and the one who is will be out of the game as it is. so i understood your point point of view. thanks and all the best. God bless
architk
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Really nice post. Thank you for sharing. I want to ask about "support/resistance weakening concept". Say, we have 3 touches on the trendline, now when price again test that trendline, will it get more weaker? or more stronger? And will those same concept work on horizontal S/R as well?
TRADEWITHFUN247
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@architk, See if price approach to a level again and again and goes back down , then we say it a "resistance level " we consider that sellers become aggressive at this level ... if we see that price going 3 times 4 times 5 times to that level and coming back down... This shows that despite sellers are aggressive at resistance level ,the buyers also do not want to give up .... Then the breakout of that resistance level become more probable ... this concept apply same with supports , and trend lines ... More the touches more the probability of it to breakout or breakdown...
Thank you for your valuable contribution to the Tradingview community and keep up the good work!