Many trading 'gurus' laugh at regular trend lines, cluttering charts with dozens of indicators. And that's a pity! ๐ For me, this is the simplest and favorite tool to catch an entry point for a short or long.
๐กI 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!๐ ๐
๐Example #1: The coin LIGHT โ 3 days of waiting ๐ฏ๏ธ
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 โ thatโs it, the magic of growth is over.
๐กResult: 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.
๐Example #2: Yesterday's ICNT โ a classic ๐
๐กThe 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 โ thatโs your sign to exit the long.
๐Example #3: FARTCOIN โ an attempt to grow ๐จ
๐กHe honestly tried to grow, but couldnโt hold on either. As soon as the trend was broken โ it continues to fall.
โ 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.
๐คBut! Look at the same LIGHT: everyone hoped for 3 days that it would soon drop. And I hoped too (and laughed at myself) ๐คฃ. But only the trend line gave just 2 real short signals during this time.
๐ก MY ADVICE TO BEGINNERS (AND NOT ONLY):
Donโt complicate things. Even if you are an experienced trader, use the basics. Not all coins move perfectly, but those that listen to the lines โ bring the easiest profit.
๐ฅ LIKE IT? GIVE A LIKE!
The more likes, the more people will see this post and stop losing money on empty expectations.
๐ฌ 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 โ it will be useful for all of us to read different opinions! ๐
#tradingStrategy #Trendlines #BTC
