Before entering any trendline trade, run through this quick checklist:
The common wisdom says you need three touches for a valid trendline. You only need two touches to draw it, but you need the third touch to trust it. However, the real secret is the angle . If your trendline is steeper than 45 degrees, it is parabolic and will fail. Shallow angles (25-35 degrees) last the longest. trendline trading strategy secrets revealed 21 full
Draw a Fibonacci retracement over the major market swing. When the aligns perfectly with your active trendline, you have found a premium structural entry point with massive risk-to-reward ratios. 13. Moving Average Dynamic Confluence Before entering any trendline trade, run through this
Market geometry dictates the sustainability of a trend. The most reliable trendlines climb or descend at an angle between 30 and 45 degrees. Angles steeper than 45 degrees represent unsustainable parabolic FOMO that quickly collapses. Angles shallower than 30 degrees indicate weak momentum easily broken by market noise. If your trendline is steeper than 45 degrees,
Draw trendlines every day. Review your past trades. Keep a journal of where trendlines worked and where they failed. The market will teach you the nuances that no article can convey.
A trendline on a 15-minute chart is easily broken. However, if a 15-minute trendline perfectly intersects with a major 4-hour trendline, you have found a high-confluence institutional inflection point. Always look for lower-timeframe entries inside higher-timeframe trends. 6. The Multi-Touch Degeneration Law
Always start your analysis on the higher timeframe—the daily or weekly chart. Identify the dominant trendline there first.