Jason Ramus from Trading Views talks about using trend lines in his trading.
He mentions, “Trend lines are a tool that I use every day in my trading. Trend lines work on all times frames. On the daily chart you will have major support areas that you can use to draw a trend line from one point to another point, and then on the 15 Min charts you can find great entry points by drawing trend lines.”
I personally can’t stress the importance of using trend lines. They are an immensely valuable trading tool. If you don’t use them, then believe me, you’re missing out. I’m not saying you can’t be profitable without them, but they will make you an even more powerful trader if you use them.
Jason continues, “Another secret: when you draw a trend line, always extend the right of the line into the future because when price pulls back it could use that same trend line as support later on in the future. Trend lines are one tool that once you master using them, you will wonder how you ever traded with out them.”
This will happen numerous times. You’ll have some trend line on your chart that was drawn hours, days, or even weeks ago, and you’ll see price come back to bounce of it, sometimes to the pip. It truly is an amazing experience when this happens, and strengthens your belief as a trader.
Jason gives an example: “Below are 2 charts that I have drawn trend lines on, the first chart is of a daily candlestick chart where I have connected 3 previous higher swing lows. The second chart is of a 20-day 15 Min chart where I am looking for a low risk entry.”
To see actual examples of this, visit here:
