Examples of how to draw and use trend linesHello traders!
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(1W chart)
Usually, the way to draw a trend line is to connect the high point and the high point where the trend changes, or to connect the low point and the low point to display the trend line.
Then, a channel is formed to express movement within that channel.
It is a relatively simple analysis tool that anyone with a good understanding of charts can draw trend lines.
However, I think whether you can use it in actual trading depends on how much you trust the trend line.
However, due to the nature of the trend line, it is expressed as a diagonal line, so it has a fundamental problem that it is not easy to respond even if it deviates from the trend line.
So, in order to trade with information obtained from chart analysis, you must draw support and resistance points close to the horizontal line.
Therefore, in chart analysis, you must have a basic understanding of the candle arrangement.
In my chart, the StochRSI indicator is
1. Use the waves of the StochRSI indicator to check support and resistance at support and resistance points.
2. Used to draw trend lines.
When drawing a trend line with the StochRSI indicator, the oversold section is below 20, the overbought section is above 80, and the trend line is drawn by connecting the points where the vertices are created.
However, the trend line drawn between high points is drawn based on the opening price of the falling candle.
Therefore, draw a trend line by selecting the peak of the StochRSI indicator or the opening price of the nearest bearish candle.
You can draw a trend line by connecting the low points of candles corresponding to the vertices of the trend line, which is drawn by connecting the low points.
For detailed instructions, please refer to the trend line displayed on the chart.
Among the trend lines drawn on the chart, I think that the trend line drawn almost horizontally is actually important.
Otherwise, I think it is a trend line drawn for chart analysis because it is difficult to use diagonal trend lines for trading.
In order to utilize a trend line expressed as a diagonal line, support and resistance points must be displayed together to be considered a trend line that can be used for trading.
When using various chart tools that are used by specifying a selection point, how the selection point is specified is very important.
Therefore, if the criteria are not clear when specifying the selection point, what is drawn using various chart tools cannot be trusted.
To solve this problem to some extent, we used the StochRSI indicator to draw a trend line.
(1D chart)
If you look at the trend lines drawn on the 1D chart, you can see that the two trend lines at the current price position are drawn close to the horizon.
Therefore, the key is whether the price can be maintained by breaking above the trend line of 1.
If this is not the case and it falls below trend line 2, it can be seen that there is a high possibility that it will lead to a further decline.
In that sense, the key is whether it can rise above the HA-High indicator, that is, above 43K.
If it falls, it is likely to touch the HA-Low indicator, so it is important to check for support near the HA-Low indicator when it is generated.
When drawing a trend line using the StochRSI indicator, vertices formed outside of oversold or overbought areas are excluded.
The reason is that the upward or downward intensity is weak.
This is to prevent confusion because if the rising or falling strength is weak, it is likely to be a fake or whipsaw.
It is important to draw in a way that has a solid basis so that you can trust the tools you draw on the chart.
StochRSI settings : 14, 7, 3, 3 (RSI, Stoch, K, D)
Have a good time.
thank you
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- The big picture
The full-fledged upward trend is expected to begin when the price rises above 29K.
This is the section expected to be touched in the next bull market, 81K-95K.
#BTCUSD 12M
1st: 44234.54
2nd: 61383.23
3rd: 89126.41
101875.70-106275.10 (when overshooting)
4th: 13401.28
151166.97-157451.83 (when overshooting)
5th: 178910.15
These are points that are likely to encounter resistance in the future.
We need to see if we can break through these points upward.
Since it is thought that a new trend can be created in the overshooting zone, you should check the movement when this zone is touched.
If the general upward trend continues until 2025, it is expected to rise to around 57014.33 and then create a pull back pattern.
1st: 43833.05
2nd: 32992.55
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** All explanations are for reference only and do not guarantee profit or loss in investment.
** Trading volume is displayed as a candle body based on 10EMA.
How to display (in order from darkest to darkest)
More than 3 times the trading volume of 10EMA > 2.5 times > 2.0 times > 1.25 times > Trading volume below 10EMA
** Even if you know other people’s know-how, it takes a considerable amount of time to make it your own.
** This chart was created using my know-how.
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