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Simple Day Trading Trend Lines Strategy
How do you draw and trade trend lines correctly?

Well, today you'll get a simple trend following strategy on how to trade support and resistance using trend lines.

To be successful in trend trading, you don't want to fight the market but instead, recognize and follow the trend.

"The trend is your friend"

A trend line is a line that connect at least two highs or at least two lows and extended in the future to show you the direction of the trend and possible resistance and support zones.

Trend lines are a very visual and reliable representation of support and resistance in any timeframe.
These bullish and bearish levels of support and resistance will give you good trades if you know what to look for and trade in the direction of the trend.

The trend lines are created by connecting rising bottoms to show an uptrend, or falling tops to indicate a downtrend. At least two swing bottoms or tops are needed to be able to draw the line.

You want to take your trade at the third touch and expect a bounce on the line or watch for a possible break of the trend line so you can trade a trend reversal.
In your trend line analysis, remember that levels are not exact and sometimes price will reverse before the level and sometimes not.

You can also duplicate trend line (connecting tops of the swing for a bearish trend and bottoms for a bullish trend) and move it to the opposite points constructing a parallel channel to get your profit targets.

This simple trend following trading strategy can be used for both a day trading and swing trading.
If you want to profit from trading trend lines, use the strategy in the video below...
  • Find recent highs and lows.
  •  Draw a trend line between (and extend) rising bottoms for an uptrend.
  •  Draw a trend line between (and extend) falling tops for a downtrend.
  •  Trade in the direction of the trend...
  •  When you have a bullish trend line, uptrend, you want to enter on the first test of the trendline that you have extended from the previous rising lows.
  •  When you have a bearish trend line, downtrend, you want to enter on the first test of the trendline that you have extended from the previous falling tops.
Winning Trading Strategy
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Copyright © Trading Walk. All Rights Reserved.