Many trading 'gurus' laugh at regular trend lines, cluttering charts with dozens of indicators. And that's a pity! 😂 For me, this is the simplest and favorite tool to catch an entry point for a short or long.
💡I pulled up my old screenshots to show you real examples: trend lines don't lie if you know how to 'prepare' them. See for yourself!👀 👇
📝Example #1: The coin LIGHT — 3 days of waiting 🕯️
We waited for its drop for three days! It moved impeccably, ignoring all the bears' prayers. But look at the photo above. As soon as the coin broke out of the trend line and held there for several candles — that’s it, the magic of growth is over.
💡Result: A powerful drop from $4.50 to $1.
Signal: Breakout of the trend line = clear short. Before this, the trend gave only 1 hint, the coin broke out of the trend line but went into correction, which also brought many profits, but the real collapse began exactly after the second breakout.
📝Example #2: Yesterday's ICNT — a classic 📉
💡The picture is exactly the same. I was waiting for the drop and finally got it. The coin broke out of the trend line and slowly but surely rolled down. When the price stops returning 'above' the line — that’s your sign to exit the long.
📝Example #3: FARTCOIN — an attempt to grow 💨
💡He honestly tried to grow, but couldn’t hold on either. As soon as the trend was broken — it continues to fall.
⛔ HONEST GUIDE: THE TREND LINE IS NOT A PANACEA
Let's be honest: this is not a 100% guarantee. This is one of the signals that can mislead you if:
The coin is forming a 'Double Top'.
The trend is expanding (false breakout with one candle and quick return back).
The coin is entering a sideways trend (flat). There we can take a maximum of 2% movement.
🤔But! Look at the same LIGHT: everyone hoped for 3 days that it would soon drop. And I hoped too (and laughed at myself) 🤣. But only the trend line gave just 2 real short signals during this time.
💡 MY ADVICE TO BEGINNERS (AND NOT ONLY):
Don’t complicate things. Even if you are an experienced trader, use the basics. Not all coins move perfectly, but those that listen to the lines — bring the easiest profit.
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💬 AND NOW A QUESTION FOR YOU: Do you use trend lines or consider it 'a thing of the past'? Maybe you have your own secret tool that is more effective? Share in the comments — it will be useful for all of us to read different opinions! 👇
#tradingStrategy #Trendlines #BTC
