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Trendlines can be great trading tools if used correctly and in this post, I am going to share three powerful trendline strategies with you.
But first, keep in mind the two most important concepts when it comes to drawing and using trendlines:
- A confirmed trendline has 3 touchpoints
You can always connect any two random points on your charts but only if you have a third one, you are dealing with a validated and active trendline.
- Never cut through the bodies
It is OK to cut through the candlestick wicks when drawing a trendline, but never cut through the bodies!
#1 Break and Retest
The break and retest strategy is quite a common strategy used by many different traders. Moritz trades a day trading strategy that is modeled around the break and retest concept and he teaches it in our Masterclass.
The idea is that once you identified an active trendline, you wait for the price to break out of it. Sometimes, the price will just run away and the price won’t look back. However,...
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