Key Rules for Drawing Trendlines:
1. Connect as many data points as possible
• Try to align your trendline with multiple candlesticks.
• The more touches, the stronger the trendline.
2. Use the real body (open/close) and wicks (high/low)
• You can use all 4 data points of a candlestick: Open, Close, High, Low.
• Trendlines can touch both the body and the wick.
3. Avoid cutting through real candle bodies
• A correct trendline should not pass through the thick part of the candle (open/close area).
• Wicks can cross the line occasionally, but not too often.
4. Trendline validity increases with touches
• The more times price respects a line without breaking it, the stronger it becomes.
🔑 Quick Tips
• Uptrend: Draw the line by connecting higher lows.
• Downtrend: Draw the line by connecting lower highs.
• Breakouts: A break of the trendline often signals reversal or momentum shift.
