2d • General discussion
Trend-lines?!
🎯 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.
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📏 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.
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🔍 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.
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⏱ 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.
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🎛 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.
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🧠 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.
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📈 7. Example Walk‑Throughs
• Tori walks through real-world chart examples:
• Illustrates how she draws the trendline.
• Shows bullish reversal bounce using a clear rejection candle.
• Demonstrates identifying a breakout with volume confirmation.
• Applies targets and stops based on structure.
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✅ Quick Checklist for Trade Readiness
1. Identify market context (trend strength/direction).
2. Draw a clear trendline with ≥ 2 touches (ideally 3+).
3. Define entry: bounce candle or breakout + optional retest.
4. Confirm with volume and price structure.
5. Set stop-loss just beyond trendline.
6. Plan target using structure or measured moves.
7. Manage trade: scale out, adjust stops as needed.
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Trend-lines?!
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