10 things to know about trend lines10 things to know about trend lines :
1- They connect two candles minimum. But more is always better, because the more candles there are, the stronger the trend.
2- They can be of 3 types: bullish (pointing up), bearish (pointing down), directionless (drawn horizontally).
3- Trend lines can be traced either on the closing price or on the candlestick wicks. It is up to the trader.
4- They can be visually represented as a line or a zone.
5- When two parallel trend lines are drawn on either side of the same candle, you get a channel. It is a 2D representation of the trend.
6- A trend line is invalidated when it is broken by either the wick or the close of a candle.
7- There are many possible trend lines. The objective is to identify the most relevant of them. The ones that will best predict the price movement.
8- Trend lines can form graphic figures. Each of them will have a specific meaning.
9- Trend line analysis is not 100% reliable. Each trend line has its own probability of success or failure.
10 - The effectiveness of a trend line evolves with the passing of time. It is necessary to constantly update them to remain in phase with the market.
