Trend Line Trading

The use of trend lines is very common among amateur traders.

Trend lines can give you a guide for entries and exits while trading within a trend.

Many inexperienced traders will plot trend lines wherever they can make the highs or lows of the price connect.

While this may seem plausible, they do this without any confluence and trade blindly off these lines.

However, with no plan of how to trade a touch or break of the line, such traders find themselves in a losing strategy.

Use this video to know the correct application of trend lines, but never trade a trend line without confluence.

Time Stamps

3:22 – DASH Previous COTW (DO NOT TRADE THIS)

 12:45 – TRENDLINE TRADING

• Basically, you are just connecting lows
• Daniel buys the 3rd touch (with confluence)
• When price breaks below the trendline, backtests it and breaks below low, Daniel shorts it
• If your trendline is on 1H you look for confirmation on 15 min
• If a trendline is taken from a span of months you have to look for at least a 1D close below

NOTE:

When everybody is watching the same thing, it is less likely to play out

28:11 – TREND LINE FAN BREAK

• Best on HTF (4H+)
• It can be used on LTF as well though it needs confluence
• Pivotal high, connect the series of highs
• Daniel would not use a log scale for this for BTC

42:33 – TREND LINE OF 45 

• Daniel does not use it
• When trend rises/declines at 45 angle this is a healthy trend and can continue
• The parabolic and weak trend is not healthy

45:05 – INTERNAL TRENDLINE

46:37 – EXAMPLES + Q&A

49:26 – CCSS TRADE EXAMPLE FROM TODAY

58:08 – BTC TA and Q&A

1:10:49 – LTC TA and Q&A