Forget about complex indicators. Everything genius ➖ is simple. The trend line ➖ is the alphabet of the trader. If you can't build it ➖ you are functionally illiterate on the chart. Today I will teach you in such a way that from tomorrow you will start seeing the market in a new way.
STEP 0: PHILOSOPHY. The trend line ➖ is not a prediction. It is a ZONE OF POWER.
It doesn’t say: "The price will go here." It shows: "HERE the fate of the trend was decided." This is the level where buyers and sellers fought to the death. And this battle will be repeated.
STEP 1: HOW TO BUILD❓ The rule of "2 points ➖ line, 3 points ➖ law" (SCHEME IN COMMENTS)
1. We look for lows in an UPWARD trend. The price makes a Higher Low (HL). We connect TWO consecutive lows with a line.
2. We look for highs in a DOWNWARD trend. The price makes a Lower High (LH). We connect TWO consecutive highs.
3. THE THIRD POINT ➖ CONFIRMATION. If the price touched your line for the third time and bounced ➖ this is a strong trend line. The entire market respects it.
MAIN MISTAKE OF BEGINNERS: They connect any two peaks that please the eye. No. The points must be consecutive extremes from which the price clearly bounced.
STEP 2: HOW TO FIND ENTRY POINT❓ The "Waiting and Confirmation" strategy.
Just a line ➖ not an order. It’s a hint. Your plan:
1. WAITING: The price approaches your verified (from 3 touches) trend line. You switch to sniper mode. You do nothing.
2. CONFIRMATION: Waiting for a reversal candlestick pattern.
For the bullish line (support): we look for an Engulfing pattern or Hammer at the line.
For the bearish line (resistance): we look for a Dark Cloud or Evening Star.
3. ENTRY: We buy (for bullish) NOT AT THE LINE ITSELF, but after the closing of the reversal candle. We set the stop-loss 1-2% below the trend line (its breakout means you were wrong).
Example: BTC bounces off the ascending line for the third time, forming a clear "Hammer" at the line. We enter after the hammer closes.
STEP 3: HARSH RULES THAT WILL SAVE YOUR MONEY
Strength Rule: The longer the trend line (in time) and the more touches, the stronger it is. The weekly timeframe line is more important than the hourly.
Breakout Rule: If the price closed above the trend line on the timeframe you built it on (for example, on 4H) ➖ the trend is likely over. Do not trade the rebound to the old line as support ➖ now it is resistance.
Angle Rule: A trend line that is too steep (at an angle >45 degrees) ➖ is unreliable and will soon break. A healthy trend ➖ is stable.
🎯 PRACTICE: YOUR FIRST ASSIGNMENT (DO THIS NOW)
1. Open the BTC/USDT chart on the 4H timeframe.
2. Find the last two obvious Higher Lows (the last 2 weeks).
3. Connect them with a line.
4. Copy in the comments:
"I drew a line. Points: [approximate minimum prices, for example, 86,200 and 87,500].
In my opinion, this is [support/resistance].
I expect the next point for verification around ______.
I will analyze the most accurate markings from the comments in the next post❗
💬 SURVEY: What is most difficult for you about trend lines❓
👀 I don’t see at all where to draw them (it seems everything is random)
📏 I don’t understand which points to connect ➖ the first ones or extremes❓
😱 I'm afraid to enter ➖ what if this is a false bounce and there will be a breakout❓
✅ It's simple, I’m already a master of lines❗
👇 Like if starting tomorrow you will stop cluttering the chart with indicators and start with a clean slate (and lines).
🔄 Repost for a friend who still thinks that RSI and MACD ➖ are analysis.
🔔 Subscribe❗ Tomorrow ➖ post-analysis: "How to distinguish a true breakout from a false one (trap for beginners)".
