0 How do you draw trend line

Trend lines are drawn on charts to help predict the general direction of price. They also help you to see reversals. On the chart below the green line is a trend line.

Trend lines also help to determine good entry and exit points, and help you decide where to put your stops. Wow! They should be called magic lines, right? Well, not really. They are quite good but, like any form of analysis, if used alone they won’t make you pips. However, they make a great addition to your trading arsenal.
The main problem with trend lines is placing them on your chart. It can be a little intimidating to start with but it is quite easy to get the hang of it. In this section, you will learn how to place trend lines on your chart, and use them to make pips!

Placing Trend Lines:   

 

There are two main types of trend lines: bullish trend line and bearish trend lines. A bullish trend line has a positive slope and is formed by connecting two or more low points. The second swing low must be higher than the first swing low. Check out the example.

A bearish trend line is formed by connecting two or more high points. The second swing high must be lower than the first swing high.

1. Identify two swing low/high points, 
2. Draw a line joining them.

There you have it! Now your chart has trend lines! But wait one minute. Even though you can place a trend line based on two swing low/high points the trend line remain unconfirmed, until it is hit a third time

Once a trend line is placed and it has had a third bounce it becomes active. Now the price should find support or resistance at the trend line. It should have trouble breaking the line. If the price does break the line it usually means the trend is over.

Trend lines can be placed on any time frame but they’re more effective on longer time frames. Also, the longer a trend line is active the stronger it gets.