Drawing Trend Lines: My No-BS Guide

Trend lines are seriously one of the most powerful tools in my trading arsenal - but I've noticed most traders screw them up royally. Let me cut through the crap and show you my approach.

A trend line isn't just some fancy chart decoration - it's a battle line showing where buyers and sellers are waging war. Connect two price points, and you've got yourself a trend line that can literally predict where price might bounce or break.

I've been burned way too many times by sloppy trend lines, so here are my hard-learned rules:

You need at least 2 swing points to draw a decent line - but honestly, the more touches you get, the more I trust it. Three touches? Now we're talking real support or resistance.

Don't draw lines that slice through candles like a drunk samurai. Clean lines only!

And for God's sake, only use closing candles. I don't care about those ridiculous wicks that some whale probably caused during your bathroom break.

For uptrends? Start at a low point on the left and connect to the higher low. Downtrends? Connect the high points as they make lower highs. Simple as that.

The real money comes when you follow the trend - buy when rising, sell when falling. Though sometimes I take contrarian positions when I see a major trend line about to break. Those can be absolute gold mines if you time them right.

Lately I've been watching BTC struggling at those trend line resistance points. The market's been choppy as hell, and these lines have saved my account more than once.

I don't care what those YouTube gurus tell you - perfect trend lines don't exist in the wild. Markets are messy, manipulated, and maddening. But a well-drawn trend line can be your compass in the chaos.