Trendlines

A lot of perceptions in trendline drawing these days, some people say that drawing trendline only valid at the closing price, the other one say at the shadow.

Personally, I draw trendline at the shadows as it gives more confirmations as we must be more detail, but we're not going to talk about it. I'm going to discuss of how to draw a trend line. First of all, we must see the big picture of the chart, whether it is an up trend or down trend, then we must know the time horizon of our trading whether we are a weekly trader, monthly or a very long term trader.

Secondly after a time series has been used, then we can start to see where is the bottom & top, usually support trendline is drawn at the bottom & resistance trendline is drawn on top, which finally create a channel or sometimes can create a pattern. Drawing trendline may not start from the left to the right but from the right to the left, as we're looking at the most recent data. See the example below:

Daily Chart, short-term horizon

Weekly Chart, mid-term horizon

Happy Investing^^
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