All language subtitles for 1. Drawing Trendlines Intro

In this section, we're going to talk about drying trend lines, right?

Remember, the trend is your friend, the classic quote and technical analysis, right?

Because we have trends you have established kind of pattern is just the trend of whether it's going

upwards or downwards.

And we can very strong indicator we can really tread on that.

But to do that, we need to be able to draw trend lines and be able to identify and then draw the trend

lines to help us make decisions around that.

And trend lines are drawn, drawn with a straight line.

So you can be drawing some straight lines here.

You don't have to be old school and drawing on a piece of paper that you're trading platform which you

kind of, you know, draw lines and connect them and move them around and do all sorts of fun stuff.

So you don't have to worry about being good with drawing straight lines.

I'm not good at art, so I'm glad for the computer technology.

So it's only using the trading platform.

And again, trends could be an upward trend or they could be a downward trend right.

In our trend lines or be straight lines either indicating an upward trend or downward trend.

And the thing with identifying trends in using trend lines to help you really identify those trend lines

and we can trade off these trend lines, it's going to give you more confidence on your buy and sell

decisions, you know, because you're you're not visually, you know, showing the trends and you can

trade off that.

And don't worry, if your lines aren't perfect, I mean, they'll be nice straight lines because of

the software, because of the platform.

But in terms of where you place them and all that, and as you learn how to do that, you know, they'll

come with will come with time probably pretty quickly, actually.

And it's not always exact.

I mean, the markets go sideways, things happen.

There's outliers that happen, you know, noise, all that kind of stuff that happens that causes a

price to go up or down.

So, again, trend lines are not always picture perfect, but, you know, they're going to be straight

lines.

So they're going to help you with your training sessions.

So don't worry about if you're if the trend lines are not works of art.

Right.

And we learn about some trend lines or some lines actually have meaning behind them already.

They're like a support line, which is the lowest price in a current trading range.

So it supports the price from going lower.

That's a good way to remember, supports the price from going lower, like in this triangle you see

here or you have resistance lines or the high price is it's the highest price of the current trading

range.

So resist the price from going higher.

It's like a it's like a line.

It's a barrier that prevents the prices from going higher as review on that in there in the trend lines

that you can draw as far as different types of trend lines you can draw.

And you're trying to draw these trend lines to kind of get an idea of what is going on.

And there's some questions around when you start thinking about trend lines I want to kind of get ahead

of right away.

And so let's look at a couple of things.

As far as drawing the actual drawing of the trend lines, the only question is, do I need to draw in

a certain place and and yes or no on that?

It depends.

I mean, most people will draw at the top and bottom of candle, but you can draw in the middle of the

body as well to the whole key is to be consistent.

So if you're drawing, let's say, at the tops and bottoms, don't halfway through and start drawing

in the middle.

So that's that's that could be consistent.

That won't be accurate for you.

So either when we talk about the top or bottom of the candle, we're typically talking about at the

at the Wick's, you know, at the upper and lower shadows at the far end there is, you see demonstrated

here and you'll see demonstrated in the upcoming lesson.

So that's how I do it.

That's how most people do it.

But there's nothing wrong with being consistent and going through the middle as well either.

The other part of this, do I need to use candlesticks in?

The answer is no.

You don't have to use candlesticks.

You can use any type of price bar.

And in sometimes something like a line bar will make it easier to see a pattern.

Or you're going to use another indicator overlay over the top of it, such as a moving average crossover

where your train platform will help make it easy.

As far as putting all that together on it, it makes it easy to switch between price bar types to use

and just you choose a different type of price bar, you click update or something like that, and it

draws your chart all ready to go with with no price.

Bars instead of candlesticks are assuming they can open high, low, close price bar or maybe like a

like a line, a trend trend line, but a price line as opposed to candlesticks.

So you don't have to use candlesticks.

However, there's a reason people use candlesticks.

Why section around candlesticks.

We talk about candlesticks is candlesticks are very helpful.

You know, since they can tell you a lot more about through about what's going on, like through the

color of their bodies, you know, the main body, you know, whether it's a white or green or red,

you know, for, let's say a downtrend, let's say for an uptrend or might be black, whatever it might

be.

As far as the colors in your system, it's red for a down trend or down a down day excuse me, not down

trend, but a down day or down period.

And also things like the length of their wicks can tell you something and they have their own patterns

kind of within your larger, bigger chart pattern.

They'll have their own patterns, too.

That might give you some indications on what might be happening and might confirm what you're seeing

with your overall chart pattern or or it might possibly make you rethink your overall chart pattern

because something is happening with the candlesticks.

So I definitely would recommend that you use can.

But you can switch between the different price, the price bars, depending on what might work for you

at that moment in time or what you're looking to do.

For example, this image here shows an uptrend as far as you know.

We can see it.

You can see that line there.

That's a trend line that definitely has got an upward slope to it going along the bottom as far as the

range indicators was going along the lows of the day.

But it also is, if you recognize from candlesticks, it's a three soldier candlestick pattern, you

know, so you get extra confirmation.

So not only is an upward trend line a good bullish sign or the prices will rise, but also having,

let's say that three soldier candlestick pattern kind of gives you even more, you know, an idea of,

OK, this looks like a very strong trend.

I'm getting confirmed not only by the upward trend line that I've drawn, but I'm also getting it from

the candlestick chart pattern.

So I'm getting the idea that it might be an extra confirmation out there.

And I feel more confident in my trade.

If I wasn't using a candlestick, for example, I wouldn't see that three soldier pattern, you know,

because I wouldn't say see that.

So that's where candlesticks can be very, very helpful.

And I would tend to recommend them using them with trend lines in almost all cases.

But you can switch over every once in awhile to a source.

Sometimes it works better with certain types of lines or certain types of prices.

I'll actually demonstrate some of those once I draw a trend line.

Is it permanently fixed?

Does it just stay there?

It never changes or anything like that, and it typically will for certain periods of time.

But in general, no, you do want to have a definite slope and you will use straight lines and all that,

but you might need to adjust the starting points or adjusting those points a little bit as things change

on your chart.

So it's more of a dynamic process.

You might have, let's say, have an uptrend.

For example, this goes sideways a little bit and maybe you're starting to draw another trend line to

show the sideways movement and then it goes up or goes down.

So you might have multiple trend lines on a longer term chart if you're trying to really get a feel

for a longer overall pattern.

So do you think of trend lines as a dynamic process?

So as we go through these chart patterns, you'll see us throughout the lessons drawing these trend

lines.

And in that part we'll get an idea of kind of where to start the trend line, where then the trend line

when prices break through a trend line, that's what you're going to be learning all throughout this.

But think about some of the basics that you learn in this part.

And then as we go through the next part of the lessons and we look at continuation and reversal patterns,

you know, you'll see how we're using trend lines in the drawing of them in those lessons and how they

all work together.

So let's start getting into that as far as how to actually draw these lines and more importantly, how

to trade off these trend lines.