Art of Trading - Trendlines 101
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First of all, I would like express my gratitude to all the followers and the support I have recently received from the community!
This one is for everyone who has recently started with TradingView or are existing users but are very new to the art of trading.
Today we'll be looking at "Trendlines" with a certain example that might leverage the importance of these lines.
Before we get started, I want to mention a couple of qualities that are very essential for trading,
-Patience
-Resilience
lack thereof which, the markets would definitely and repeatedly teach you!
So, what is a trendline? Any two closes connected by a straight line can be called a trendline. Usually used in higher TF's (timeframes)but can also be used on smaller TFs.
What is it's purpose? Once a certain trend has been established in a given TF and such line has been drawn, these can be used to identify supports or resistance where a probable bounce and continuation of the trend could occur.
If the market is trending upwards, a line connecting the lows of two candles, usually the first breakout candle and the lowest pullback candle, can be established as a support trendline (see illustration).
The same applies for a market that is trending downwards which will give us a resistance trendline.
Trendlines in my opinion will always be respected by a market, and also act as, for the lack of a better word, magnets, pulling the asset towards it. So when an asset is hovering around a support trendline, chances are that the asset is pulled towards it. If the trend is strong enough the asset bounces, it not it breaks through. Once broken through support becomes resistance and vice versa.
There will be of course instances when the asset breaks through a trendline but still closes above the trendline, faking participants out of the market, usually referred to as shaking out weak hands. But that's a topic for a different time.
Now that you are aware what Trendlines are, what can you infer from the illustration above? Leave a comment!
If you like this sort of posts, hit boost, so I can prepare more such content. I'm also only human, and still learning, and if you think the information I provide is erroneous, please let me so I can correct and learn together with you! Learning never stops! See you in the next one, peace!
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Please use my referral link if you are looking to start a subscription! I would definitely recommend it as it provides the best tools to enable you become the best version of the trader that you deserve to be!
tradingview.com/pricing/?share_your_love=TulpenFieber
Also if you want me to analyse any asset, feel free to leave it in the comments or dm, I'll make sure to share my opinion on it!
This one is for everyone who has recently started with TradingView or are existing users but are very new to the art of trading.
Today we'll be looking at "Trendlines" with a certain example that might leverage the importance of these lines.
Before we get started, I want to mention a couple of qualities that are very essential for trading,
-Patience
-Resilience
lack thereof which, the markets would definitely and repeatedly teach you!
So, what is a trendline? Any two closes connected by a straight line can be called a trendline. Usually used in higher TF's (timeframes)but can also be used on smaller TFs.
What is it's purpose? Once a certain trend has been established in a given TF and such line has been drawn, these can be used to identify supports or resistance where a probable bounce and continuation of the trend could occur.
If the market is trending upwards, a line connecting the lows of two candles, usually the first breakout candle and the lowest pullback candle, can be established as a support trendline (see illustration).
The same applies for a market that is trending downwards which will give us a resistance trendline.
Trendlines in my opinion will always be respected by a market, and also act as, for the lack of a better word, magnets, pulling the asset towards it. So when an asset is hovering around a support trendline, chances are that the asset is pulled towards it. If the trend is strong enough the asset bounces, it not it breaks through. Once broken through support becomes resistance and vice versa.
There will be of course instances when the asset breaks through a trendline but still closes above the trendline, faking participants out of the market, usually referred to as shaking out weak hands. But that's a topic for a different time.
Now that you are aware what Trendlines are, what can you infer from the illustration above? Leave a comment!
If you like this sort of posts, hit boost, so I can prepare more such content. I'm also only human, and still learning, and if you think the information I provide is erroneous, please let me so I can correct and learn together with you! Learning never stops! See you in the next one, peace!
______________________________________________________________________________________
Please use my referral link if you are looking to start a subscription! I would definitely recommend it as it provides the best tools to enable you become the best version of the trader that you deserve to be!
tradingview.com/pricing/?share_your_love=TulpenFieber
Also if you want me to analyse any asset, feel free to leave it in the comments or dm, I'll make sure to share my opinion on it!
Komentarz
Bingo!Komentarz
Trendline broken as expected, time to test the green lines.
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