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Trendlineanalysis

Trend lines - how to build them and how to use them?Before we dive into the world of trend lines, I recommend familiarizing yourself with the support and resistance zone Here we go: Trend lines are one of the most universal tools for trading in any market, used in intraday, swing and position trading strategies. Properly drawn on charts, they help to predict the direction of price movement and identify trend reversals. In addition, trend lines help you to accurately determine the optimal entry and exit points, as well as set a stop loss. It is recommended not to rely on trend lines alone, but to integrate them with other methods of technical analysis, expanding your trading arsenal. Often many traders draw too many lines, it is uninformative and useless How to place trend lines on a chart? An uptrend is a combination of at least two pullbacks Similar in a downtrend: Instructions for markings: Find at least two points on the chart Connect them with a line But, let's remember the Axiom: 1. Randomness 2. Coincidence. 3. Regularity Until a trendline is pushed back a third time - it is considered unconfirmed... Once the third bounce has occurred, the line can be considered valid, but does not guarantee that it will necessarily bounce the fourth time! Like all patterns in the market, trend patterns can be drawn on any timeframe, also - they are more effective on older ones (as well as all others) How to use trend lines in your trading? Frequent trades from a trend line are rebound or breakout trades Example: Trendline confirmed (bounced three times) - on the fourth approach we can pay attention - what happens next? Price will either bounce from our trendline again or there will be a breakout Next example: How can we determine whether there will be a breakout or a bounce? As I said before, you need to take into account the context: indicators, price action, nearby levels and so on (it all depends on your psychology) How do trend lines fit together? Support and resistance levels are areas on a chart that indicate potential pressure (on a side) The same principle applies to trend lines. The only difference is that trend lines are sloped rather than horizontal. How to properly label/draw trend lines? Which trend lines are important and which ones should be ignored? Focus only on the major pivot points Connect at least two major pivot points. Adjust the slope of the line to get the most amount of price touching the line, whether it is the shadows of candles or their bodies. Important clarification - trend lines represent a support zone, not specific levels. How can you use trend lines? The trend is our friend. Where the trend goes, so goes we. Trading against the trend is foolish. If you do decide to do it, it must be justified! Trend lines are the direction of the current market. Also the trend line itself can be divided into two positions: If the trend becomes flatter, it means that the market is moving into a state of consolidation If the trend is becoming steeper, it means that the trend is getting stronger (or perhaps it is reaching its climax and is approaching its final stage). Trend Lines Entry Point: Like all other patterns in technical analysis or price action - trend lines can help you find a more favorable entry point in terms of risk-to-reward ratio How to use a trend line to identify a market reversal? Chances are you have encountered this before. There is a trend line breakout, you are already expecting a trend reversal, but the market continues its original movement Like all indicators/patterns - not a panacea. Each strategy has its own risks, just when we add other osnovnopologologayuschih signs to one strategy, the chance of risking a loss - decreases! Technique for determining a trend reversal: Wait for a trend breakout Wait for a lower low/maximum to form. If the price breaks the previous minimum/maximum, most likely the trend will go in the direction of the breakdown...
BINANCE:BTCUSDEducation
by truepersonal
13
“Nasdaq Continues Its Uptrend”Expectations that the Fed will implement a 25 basis point interest rate cut next week are being maintained. This situation is perceived positively for the indices. By the end of the year, a total rate cut of 100 basis points is almost certain. The CPI and PPI data suggest that the Fed might not need to cut rates as aggressively as the market had anticipated. Technically, if the resistance level at 19,500 is permanently surpassed, the rise could gain momentum towards the 19,700 and then 19,950 resistance levels. On the downside, if the index falls below the 19,100 level, a pullback towards the support levels at 18,800 and then 18,450 might be seen.
NASDAQ:NDX
by primequotes
“The gold price is going up”In the US, the Producer Price Index (PPI) experienced a slight slowdown in August. Weekly unemployment benefit claims rose by 2,000, reaching 230,000. Following this data release, the decline in the dollar deepened. Meanwhile, the yield on 10-year US Treasury bonds fell to 3.62%. As a result, gold prices tested the 2570 resistance level. From a technical perspective, if prices remain consistently above the 2570 resistance level, an increase to 2600 and then to 2650 could occur. On the downside, if the price falls below the 2570 support level, a pullback could extend to 2535 and then to 2482.
OANDA:XAUUSD
by primequotes
"DAX Index Rises Ahead of ECB Meeting"In the U.S., the consumer price index increased by 0.2% in August, while the annual rise was 2.5%, aligning with forecasts. Following the drop in inflation, the likelihood of the Fed implementing a 25 basis point rate cut next week has risen to 85%. After this data release, market risk appetite increased, leading to intensified buying activity in the DAX index. Today, there is an expectation of a 25 basis point rate cut in the European Central Bank (ECB) meeting. Technically, on the upside if the price holds above the 18,500 resistance, buying could push the index first toward the 18,700 resistance and then to 18,900. if the 18,500 level is broken to the downside, a pullback could extend first to the 18,285 support and then to 18.075.
XETR:DAX
by primequotes
Silver is Rising!With the weakening of the U.S. labor market, expectations for a 25 basis point rate cut by the Fed remain intact. In this context, U.S. 10-year Treasury yields have turned downward. The dollar's depreciation in yesterday's session led to a recovery in commodities, supporting a rebound in silver prices from the 27.75 level. The inflation data to be released today will provide further clues regarding the extent of the Fed's interest rate cuts. From a technical perspective, if prices hold above the 28.90 resistance level, a rise to 30.0 and then to 30.80 could occur. On the downside, if the price falls below the 27.75 support level, it could decline to 26.75 and then to 25.70.
OANDA:XAGUSD
by primequotes
Alibaba - The Bleeding Is OverNYSE:BABA dropped roughly -75% after it broke the long term trendline towards the downside back in 2021 before it found some strong support at a previous horizontal support level. Click chart above to see detailed analysis 👆🏻 Bulls are still not giving up on Alibaba and after the strong retest and reversal of the all time low back in 2022, Alibaba managed to consolidate and stop the agressive downtrend. If Alibaba actually manages to break back above the confluence of resistance, this stock is actually back to a bullish market and we could see the beginning of a new uptrend and maybe even new all time highs. Levels to watch: $81 Keep your long term vision, Philip - BasicTrading
NYSE:BABALong
by basictradingtv
6
DAX Index Recovers Its Losses!Following the release of the U.S. non-farm payroll report, which came in below expectations, market risk appetite weakened. The DAX index also accelerated its decline, targeting the 18,257 support level. Expectations for a Fed rate cut have strengthened to 50 basis points, while the ECB is expected to lower rates by 25 basis points at its meeting this week. Technically, if the 18,285 level is broken on the downside, a pullback could extend first to the 18,075 support and then to 17,920. On the upside, if the price holds above the 18,500 resistance, buying could push the index first towards the 18,700 resistance and then to 18,900.
XETR:DAX
by primequotes
"USOIL is going downward"The weakening labor market has reduced risk appetite in the markets, triggering a drop in crude oil prices toward the 67.50 level. Additionally, OPEC+'s crude oil production in August decreased by 300,000 barrels due to declines in Libya and Kazakhstan. However, ongoing supply concerns continue to pressure the commodity. Technically, if the 67.50 support level is broken, further declines toward 65.55 and 63.55 are possible. On the upside, if the 70.0 resistance is surpassed, buying momentum could accelerate toward the 72.60 and 74.50 resistance levels.
TVC:USOIL
by primequotes
Master Gold’s Breakout Strategy: Key Levels Explained!this chart of Gold Spot (XAU/USD), we observe several key technical features that guide potential trade decisions: Forming Ascending Channel: The price is developing within an ascending channel, indicating a potential continuation pattern. This channel often signals further upward movement, but caution is needed, especially when the price is in a "weird" volatility zone or failing to make new lows. LQZ Grabbed: This marks a liquidity zone where a price sweep likely occurred, gathering liquidity from stop-loss orders. The market can potentially reverse after this grab, pushing the price higher. LTF Flags (1 and 2): These small consolidation patterns (flags) on the lower timeframe suggest continuation. The first and second flags could signify pauses in the broader trend, with the potential for either breakout or breakdown. Failed Push into Descending Hover: This indicates a failed bullish push, transitioning into a descending pattern (hovering near a key level). A failed breakout could signal upcoming bearish pressure. Price Path Projections: There are two scenarios represented by the green and yellow paths: Bullish Scenario (Green Path): If the price maintains the ascending channel and breaks out from the flag structure, we could see higher prices above the liquidity zone (LQZ), likely towards the 4-hour resistance level around 2532. Bearish Scenario (Yellow Path): If the price fails to hold, particularly breaking the ascending channel and descending, it could move lower toward the 1-hour LQZ around 2503. In summary, the price action around the flags and the liquidity zones (LQZ) will dictate the next major move. Waiting for confirmation of either the bullish breakout or bearish failure would align with a high-probability setup.
OANDA:XAUUSD
by Adlercon333
USDCAD 1H Analysis: Resistance and Support Levels to Watch for SThe chart shows the USDCAD currency pair on a 1-hour timeframe, where the price is currently trading around 1.35124. The market has been in a downtrend, but there is potential for short-term consolidation and a possible retracement before further movement. Key Observations: Downtrend Momentum: The price has been steadily declining from the recent high, reaching a lower support zone. The resistance level above (1.3600-1.3620) is expected to act as a key zone for any retracement. Resistance Zones: Immediate Resistance: The price might retest the 1.3600 area before continuing the downtrend. This level aligns with the previous structure and is an important area for sellers to enter. Major Resistance: There is another significant resistance zone around 1.3850 where the price previously reversed, indicating strong selling pressure. Support Zones: Immediate Support: A potential move towards 1.34376 is indicated, where buyers could re-enter the market, and further price consolidation may occur. Major Support: The level around 1.3300 is a significant support area, and a break below this level could lead to further downward momentum. RSI Indicator: The RSI is showing bearish momentum, and the market may continue to push lower in the short term before any significant retracement occurs. Expected Price Movement: In the short term, the price could bounce back toward the 1.3600 resistance area before facing selling pressure. If it fails to break through, a decline toward the support level at 1.34376 and further down to 1.3300 is possible. On the other hand, a break above the resistance would invalidate the bearish bias, signaling further bullish movement. This setup presents both short-term selling opportunities on retests of resistance zones and potential buying opportunities at support levels for a range-bound strategy.
Short
by Nigouk
Nasdaq - Here we finally go!TVC:NDQ is finally rejecting the resistance and creating the anticipated bearish correction. Let me just put it that way: The correction was 100% anticipated and you can definitely then trade accordingly. Just a couple of weeks ago the Nasdaq retested a resistance which has been pushing price lower for 14 years - a correction was very likely. So far the Nasdaq is dropping significantly but I don't think that the current correction will actually be over soon... Levels to watch: $16.000 Keep your long term vision, Philip - BasicTrading
TVC:NDQShort
by basictradingtv
10
Nvidia - The -60% correction is starting!NASDAQ:NVDA is showing us multiple confluences which will lead to a massive move lower. Be greedy when others are fearful and fearful when others are greedy. But on Nvidia we cannot be fearful yet - so far, the smaller timeframes are still bullish. Everything makes me believe though that we will see a significant move lower soon: Nvidia is retesting massive channel resistance, repeated the previous bullish cycles and is preparing for the next correction cycle! Levels to watch: $120, $50 Keep your long term vision, Philip - BasicTrading
NASDAQ:NVDAShort
by basictradingtv
51
DOGE FRACTAL : Don't Lose Hope! BEST YET TO COME DOGE has been trading undeniably bearish over the past few weeks, as we see significant signs of bearish price action: - 📉 lower highs - 📉 lower lows However, if we take a look at a fractal that played out between Dec 2023 - Feb 2024, there is definitely a chance for a PARBOLIC PUMP. Watch this short video to find out how (there are TWO SIGNS we need to see on the chart BEFORE we can seriously consider this). Make sure you catch my update on Bitcoin, because ultimately BTC determines the direction of the market. Therefore it's vital to watch the trendsetter! ________________________ BINANCE:DOGEUSDT
by CryptoCheck-
$NZDUSD | Sell Trade | Market Exec |Technical Confluences: Price action is in Overbought conditions for Daily and Weekly Timeframe Price bounced off the 38% Fibo retracement Price is also rejecting the Resistance trendline Price action also reversed away from an Interest Zone Fundamental Confluences: With all other Central Banks in the DM space wanting to cut rates, it negates off the yield premium that NZD would be getting against USD Market is consolidating after all the USD sell-off and profit-taking mood is here now ----- Took a short position here targeting the 38% Fibo extension level while will look to cut above the Interest Zone. Risk/Reward ratio is at 2.41. Price should not break above the Resistance trendline to affirm the recent price has topped out. -----
Short
by weekendanalyst
2
Gold Trade Idea Gold Technical Analysis. Weekly - Bullish - Price is above the trend-line (Grey) Daily - Bullish - Price is above the trend-line (Blue) 4 hour - Bullish - Price is above the trend-line (Green) 30 minuets - Bullish - Crossed another trend-line (Yellow) I have the first trade that is still playing out. Now i have opened a new trade to the upside risking 1%, also placed another trade if the price goes down half to the amount that i'm risking with another 1%. This is not a financial advice just my way on how i'm seeing the markets.
TVC:GOLDLong
by DylanCassar
Chart Patterns Within Patterns: A Guide to Nested Setups Daily Chart Analysis: Pattern Overview: The daily chart shows an Ascending Channel formation, which generally indicates a bullish trend but can also signal a potential reversal if the upper trendline acts as strong resistance. Within the ascending channel, there are continuation patterns such as smaller bull flags, which suggest bullish momentum continuation. Key Resistance and Liquidity Zone (LQZ): The upper trendline of the ascending channel aligns closely with the recent highs around the $2,530 - $2,540 region, creating a significant resistance area. The 1-Hour Liquidity Zone (LQZ) at $2,486.793 is marked below the current price, indicating potential areas where price might retest before any significant upward or downward move. Potential Reversal Signal: The upper boundary of the ascending channel has recently been tested multiple times, and each time, there has been a slight pullback, indicating selling pressure. This could be a precursor to a possible reversal if this level is not broken with conviction. 4-Hour Chart Analysis: Nesting Patterns: The 4-hour chart also reveals several nested patterns within the broader ascending channel, including smaller bull flags and a potential double-top pattern forming at the resistance zone. The price action is consolidating below the resistance line at $2,530.750, creating a possible Double Top scenario, which could indicate a bearish reversal if confirmed by a breakdown below the neckline support. Impulse and Correction Phases: The recent impulsive moves upwards have been followed by corrective pullbacks, which have been forming higher lows, reinforcing the bullish bias in the medium term. However, the proximity to the resistance and the potential double-top formation might signal caution for long positions. 1-Hour and 15-Minute Chart Analysis: Short-Term Structure: The 1-hour chart shows a more detailed view of the recent consolidation phase near the key resistance level. There are signs of weakening momentum as prices approach the upper trendline. The 15-minute chart further shows a tightening range and potential bear flag or a descending channel, which could indicate a short-term bearish continuation if the lower trendline of this smaller pattern breaks. Critical Levels: The support level around $2,486.793 (1HR LQZ) is critical for intraday trading. A break below this could lead to a sharper correction towards the lower boundary of the ascending channel on the daily chart. For bullish continuation, a clear break above the $2,530 - $2,540 resistance with strong volume would be needed to confirm further upside potential. Trading Strategy and Recommendations: Bullish Scenario: Look for a strong breakout above the $2,530 - $2,540 resistance on the daily chart, accompanied by increased volume and a break above the smaller continuation patterns (flags) on the lower timeframes. Enter on a reduced risk entry after a pullback to the breakout level, with stops placed below the recent consolidation range or the 1-Hour LQZ. Bearish Scenario: Watch for a confirmed Double Top breakdown on the 4-hour chart, with a clear break below the neckline support around $2,486.793. Consider short positions on the break of the neckline or after a retest of the breakdown level, with stops placed above the recent highs or the upper boundary of the descending channel on the 15-minute chart. Risk Management: Given the proximity to a key resistance level and the potential for a reversal, it is crucial to manage risk carefully. Use tight stops and consider reducing position size until a clear directional move is confirmed.
OANDA:XAUUSDEducation
by Adlercon333
2