What are trend lines?
Trend lines are the lines drawn at an angle above or below the price. They serve to indicate the current trend, as well as to determine the moment of their turn. In addition, they can be used as support and resistance, determining the opening and closing positions.
How to draw trend lines. On a downtrend, the trend lines are above the price.
On an upward trend, trend lines are under the price. On a downtrend, they are drawn at the maximums, and on the uptrend - at the minimums.
To draw a trend line, it is necessary to have at least two maximums at different levels on the chart, or two different minimums.
However, a reliable trend line will be if the chart has at least three maximums or minimums. In fact, the more often the price touches the trend line, the more reliable the line is, since in this case a large number of traders use the line as support or resistance.
Candle shadows or their bodies? Some traders draw trend lines along the bodies of the candles, others draw them by their shadows. Although most traders draw trend lines from the shadows of candles, you can also use candle bodies to draw the lines.
Drawing trend lines, in some ways, is a subjective process , so you can use any of these methods for drawing lines. However, it is necessary to stick to one method constantly. #cryptostudy