🎯 1. What Is a Trendline? • A trendline is a diagonal line drawn across price action to identify support (on an uptrend) or resistance (on a downtrend). • The greater the number of touches without break, the stronger the trendline’s significance. ⸻ 📏 2. Drawing Trendlines Accurately • Connect at least two swing lows (for upward trend) or two swing highs (for downward trend). • Preferably, use three or more touches to confirm relevance. • Use higher timeframes (e.g., 5‑min/15‑min charts) to reduce noise. • Extend the line into the future to project potential reaction zones. ⸻ 🔍 3. Trendline Breakout vs. Bounce • Bounce: Price touches the trendline, rejects it, and continues in original trend direction. • Breakout: Price decisively closes beyond the trendline — signals a possible trend change or acceleration. • Watch volume: Confirm breakouts with higher-than-average volume to reduce false signals. ⸻ ⏱ 4. Timing Entries • On bounce: • Wait for a pullback to the trendline. • Enter when candle shows rejection (e.g., wick, reversal pattern). • Use tight stop-loss just beyond the recent low/high. • On breakout: • Wait for a candle close beyond the trendline. • Optionally, wait for a retest and rejection at the trendline. • Enter after confirmation, placing stop just inside the trendline. ⸻ 🎛 5. Trade Management & Targets • For bounces: aim for recent swing highs/lows or key levels. • For breakouts: price projection = distance between the first touch and trendline, extended from breakout point. • Use risk‑reward ratios like 1:2 or 1:3. • Consider scaling out as price moves in your favor. ⸻ 🧠 6. Avoiding Common Errors • Avoid forcing trendlines on noisy, low‑volume movements. • Don’t rely on single‑touch or poorly drawn lines. • Be aware of false breakouts — watch for volume support. • Use multi‑timeframe confirmation for stronger signals. ⸻ 📈 7. Example Walk‑Throughs • Tori walks through real-world chart examples: • Illustrates how she draws the trendline.

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