Drawing the Trendline "By The Books" Or "By Experience"? | Forex Factory

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Drawing the Trendline "By The Books" Or "By Experience"?

  • #1
  • First Post: Edited Aug 5, 2025 8:31pm Apr 30, 2016 3:06am | Edited Aug 5, 2025 8:31pm
Z5
  • #2
  • Apr 30, 2016 3:47am Apr 30, 2016 3:47am
Excellent subject, but the most important line has been left out.

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  • #3
  • Apr 30, 2016 3:52am Apr 30, 2016 3:52am
Quoting simond2002
Excellent subject, but the most important line has been left out. {image}
He is referring to trend lines not support an resistance.
  • #4
  • Apr 30, 2016 3:56am Apr 30, 2016 3:56am
Quoting flylife
{quote} He is referring to trend lines not support an resistance.
There's support and resistance marked in his original charts.
  • #5
  • Apr 30, 2016 3:58am Apr 30, 2016 3:58am
Quoting simond2002
{quote} There's support and resistance marked in his original charts.

I'm happy to see this thread getting feedback. Brother, I drew a supply zone. Resistance is a level, supply is a zone.
  • #6
  • Apr 30, 2016 4:01am Apr 30, 2016 4:01am
Quoting chartsndream
Resistance is a level, supply is a zone.
Ermm, no. A supply zone is a primary resistance level, untested. Test it and it becomes standard resistance.

Anyhow, good luck with your thread.
  • #7
  • Apr 30, 2016 4:03am Apr 30, 2016 4:03am
Quoting simond2002
{quote} Ermm, no. A supply zone is a primary resistance level, untested. Test it and it becomes standard resistance. Anyhow, good luck with your thread.
Thank you brother for your feedback. As I have said before I am still in my learning phase and appreciate all the feedback I receive here. I'm all about positive criticism and correcting my flaws along the way to becoming a profitable trader.
  • #8
  • Apr 30, 2016 4:10am Apr 30, 2016 4:10am
Quoting chartsndream
{quote} Thank you brother for your feedback. As I have said before I am still in my learning phase and appreciate all the feedback I receive here. I'm all about positive criticism and correcting my flaws along the way to becoming a profitable trader.
Thank you for being one of the more sensible OPs on here

SR and SD are very powerful trading tools but they're different phases of the same thing. Thus they get conflated, and it takes a lot of work to get your head around the subtle distinction. But doing so is an important part of the learning curve in my view.

Anyhow, I don't wish to detract the thread from the original subject of trendlines. Good luck with it
  • #9
  • May 1, 2016 7:22pm May 1, 2016 7:22pm
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My trendlines
..
  • #10
  • May 2, 2016 2:18am May 2, 2016 2:18am
The picture shows correction of the downtrend. Trading on such movement is trading against the trend. But if used correctly theory trend, and combine it with other popular methods, it is possible to quite accurately determine the market movement.
In my example, you can see the use of Elliott waves. The completion of wave 5 is a signal to sell. At the same time, this is the point - it's touching the upper border of the trend.
Thus, both versions are correct. These are two different trends. More precisely, this downward trend and its correction.

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  • #11
  • May 2, 2016 5:51am May 2, 2016 5:51am
slicktick and denforex, thank you for your charts. Really nice to see the perspective of trendlines from other traders. Are you two using a system thought from a book or are your charts refined by your own market analysis and exposure? I am using charts in an unorthodox way that they don't really teach in books that my mentor has been consistent for two years now. I have been trading forex 8 months and am not consisten yet myself but my trading has ten fold ever since I have someone guiding me the right path. I feel like all this "gurus" on social media are making money "teaching" their system but are not really making money trading their own "system" and they don't show their statements whe requested. That's all you see in Instagram, "traders" with 5 months of market experience selling training and signals. What are you thoghts? Would love to hear back.
  • #12
  • May 2, 2016 6:12am May 2, 2016 6:12am
Quoting chartsndream
slicktick and denforex, thank you for your charts. Really nice to see the perspective of trendlines from other traders. Are you two using a system thought from a book or are your charts refined by your own market analysis and exposure? I am using charts in an unorthodox way that they don't really teach in books that my mentor has been consistent for two years now. I have been trading forex 8 months and am not consisten yet myself but my trading has ten fold ever since I have someone guiding me the right path. I feel like all this "gurus" on social...
I use my experience and my nonstandard view of the market to analyze. I trade not from books.
What about the trading signals, I stay away from these systems. I never to use an other people signals, because I think it is incorrect. You must be able to develop independently. At the same time, many offered me to sell my signals, but I have no one and never sold my signals. For me, this is unacceptable. I am ready to share my knowledge, but does not work instead of someone else.
  • #13
  • May 2, 2016 6:26am May 2, 2016 6:26am
Quoting DenForex
{quote} I use my experience and my nonstandard view of the market to analyze. I trade not from books. What about the trading signals, I stay away from these systems. I never to use an other people signals, because I think it is incorrect. You must be able to develop independently. At the same time, many offered me to sell my signals, but I have no one and never sold my signals. For me, this is unacceptable. I am ready to share my knowledge, but does not work instead of someone else.
I respect your viewpoint. My viewpoint is, if you treat trading like a business, teaching could be part of it. A second source of income teaching is acceptable as long as your are able to consistently have a source of income from trading alone and provide the proof.. At the end, we all look for teachers when learning any new skills. What is unacceptable to me is these "traders" with six months of exposure selling their "experience" when they themselves have not develop a consistent source of income themselves trading. And it's the sad reality but most of these "gurus" are doing just that. My trading has really improve since I found a genuine trader with ten years of market experience and over +2 years of consistency (with proof). So, I do feel teaching is acceptable as long as it's genuine and not some scam like the ton we see today that I actually myself paid for one time.
  • #14
  • May 2, 2016 1:24pm May 2, 2016 1:24pm
Quoting chartsndream
Looking at the first chart, where would you draw the trendline? Would it look something like the trendline drawn in the second chart? That is how the books you read about technical analysis teach you and how majority of traders are plotting their charts. But why is it then that 95% of traders really lose money? Is it really psychology fully at fault or does it also have to do with the way we are taught to trade in the first place? Take a look the third picture, this is how the trendline is drawn by a trader with a decade of market experience. This...
Trendline by definition is a sloping line connecting previous highs or pevious lows. Horizontal lines are not trendlines IMHO.

Not all definitions by the book are correct and neither does experience come into it, especially if you are drawing them without any observance to strict rules.
Otherwise they are totally subjective and you will draw them differently to the next trader. Higher timeframe trendlines will always br superior to the Lower
timeframe trendlines. Trendlines' task is to identify price trend by connecting valid points of reference and are drawn sloping down and/or sloping up.

The second chart trendline is incorrect as the market has not made a new low from the second point of TL, so that point is not valid and would need to locate a prior high that fits the rule. The third chart fulfills the TL rule so that makes it valid.

You have to be consistent (by the book) and that comes from practise and from that becomes experience.
It never gets easier, you just get better
  • #15
  • May 2, 2016 7:37pm May 2, 2016 7:37pm
Quoting Shabs19
{quote} Trendline by definition is a sloping line connecting previous highs or pevious lows. Horizontal lines are not trendlines IMHO. Not all definitions by the book are correct and neither does experience come into it, especially if you are drawing them without any observance to strict rules. Otherwise they are totally subjective and you will draw them differently to the next trader. Higher timeframe trendlines will always br superior to the Lower timeframe trendlines. Trendlines' task is to identify price trend by connecting valid points of reference...


Thank you. Very informative post you gave. Good to see the mindset of of other traders. Hope this thread keeps growing.
  • #16
  • May 3, 2016 2:39am May 3, 2016 2:39am
Quoting Shabs19
Horizontal lines are not trendlines IMHO.
Agree. But let me ask you a question; if we removed the time element (x-axis) from our charts, would price still go up and down?
  • #17
  • May 3, 2016 3:03am May 3, 2016 3:03am
Quoting simond2002
{quote} Agree. But let me ask you a question; if we removed the time element (x-axis) from our charts, would price still go up and down?
Are you talking about Renko charts, point & figure charts etc. where there is no time axis ?
Yes, We could also draw trendlines on those charts.

I am not a big fan of trendlines, horizontal lines, such as market opens, key levels of support & resistance, supply & demand are more important IMHO.
Also drawing horizontal lines must follow simple clearly defined rules, I have noticed there to be a lot of variance on these as well.
It never gets easier, you just get better
  • #18
  • May 3, 2016 3:19am May 3, 2016 3:19am
First, the horizontal trend called the "sideways trend"
Secondly, in the books are given, often perfect examples. For example, the book will not take the trend, which has a breakdown because of the news. Therefore, by reading the book, you need to trade. No sequence.
Thirdly. You're talking about a trend and its correction. Both options are valid for different timeframes.
  • #19
  • May 3, 2016 3:41am May 3, 2016 3:41am
First, the horizontal trend called the "sideways trend"
No such thing as a sideways trend. Do you mean a ranging market, consolidation ?

Secondly, in the books are given, often perfect examples. For example, the book will not take the trend, which has a breakdown because of the news. Therefore, by reading the book, you need to trade. No sequence.
Books will always show perfect examples, it also depends on whether you draw them consistently, as the rules vary from author to author.
Breakdowns of trendlines occur as professionals will target stops there.

Thirdly. You're talking about a trend and its correction. Both options are valid for different timeframes
Now how would you have a correction in a sideways trend ?
It never gets easier, you just get better
  • #20
  • May 3, 2016 4:11am May 3, 2016 4:11am
We still see that now the price is still stopped on the support of 122,570. That's the only thing I take into account. Trend lines should be after the analysis of significant levels.
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