Criteria for Determining Effective Trend Lines and Practical Core
A set of trend lines with practical value must meet two core requirements simultaneously; neither can be absent:
1. Accurately anchor the core starting point of the trend: In an upward trend, it must correspond to the naturally formed 'higher low (HL)'; in a downward trend, it must lock in the true 'lower high (LH)', and not randomly connect ineffective points during the oscillation process.
2. Validate through practical verification of key structures: For example, in an upward trend, a pullback to the trend line (support zone) should push the market to create new highs, while in a downward trend, a test of the trend line (resistance zone) should trigger the market to create new lows. Only by resonating with these key structures does a trend line truly possess the value of guiding trades.
Trend lines that meet the above two points will exhibit strong stability and can provide precise guidance throughout the market; conversely, if drawn merely to connect points with no structural significance, they are essentially 'pseudo trend lines' that not only fail to assist decision-making but also mislead trading judgments.
In fact, the key to trend lines has never been 'drawing precision' but whether they can penetrate the surface oscillations of the market to accurately identify the real turning points of the trend. When traders truly understand the internal structure of the trend, drawing effective trend lines becomes an inevitable result—this is the core logic of technical analysis.