How to draw a trend line?
A trendline is a charting tool used to determine market direction by connecting prices using support or resistance. A trendline can also be thought of as a straight line connecting two lower highs or higher highs.
There are some rules for drawing trend lines
A trendline should connect at least 2 swing tops or bottoms, hitting more means it is stronger.
The trend line should not cross one or more candles.
Trend lines can only be based on closing candles.
To draw an uptrend line, you start with the swing low on the left side of the chart and connect it to the higher swing low.
To draw a downtrend line, you start from the swing high on the left side of the chart and connect it to the lower swing high.
Trend following is a trading strategy that involves buying when prices are rising and selling when prices are falling.
