How do you draw a trendline correctly?
You draw a trendline by connecting at least two swing high or lows and extending the trendline into the future to show you the direction of the trend and resistance and support levels you can trade.
Below you will see a simple trend following strategy on how to trade trendline bounces and find strong support and resistance levels using trendlines.
To be successful in trend trading, you do not want to fight the market but instead, recognize and follow the trend (the trend is your friend).
A trendline is a line that connect at least two highs or at least two lows and extended into the future to show you the direction of the trend and possible resistance and support levels.
Trendlines are a very visual and reliable representation of support and resistance in any timeframe.