L-EarningCharts

Trendlines — How to Draw Them Properly

7/6/2026

basics
technical
guide

A trendline connects swing lows (uptrend) or swing highs (downtrend) — the trend's visible spine.

Level by level

Beginner

Two touches draw the line; the THIRD touch validates it. Steeper lines break sooner; 30-45 degree lines age best.

Intermediate

Never force the line through candles to fit your bias — if it doesn't fit cleanly, there is no line. Redraw as the trend matures (fan principle).

Advanced

Trendline breaks signal CHANGE, not reversal — often just sideways digestion follows. Volume on the break and a retest-fail sequence separate real breaks from shakeouts.

Common mistakes

  • Forcing lines through wicks and bodies to make it work
  • Trading every micro-trendline on the 1-minute chart

Practise & tools

_Educational content only — not financial advice. Historical behaviour never guarantees future results._