Trend Lines
Trend Lines
They are probably one of the most underutilized ones as well.
Unfortunately, most crypto traders don’t draw them correctly or try to make the line fit the market instead of the other way around.
This is known as an ascending trend line.
This is known as a descending trend line.
How do you draw trend lines?
To draw crypto trend lines properly, all you have to do is locate two major tops or bottoms and connect them.
What’s next?
Nothing.
Uhh, is that it?
Yep, it’s that simple.
Here are trend lines in action.
Types of Trends
Uptrend (higher lows)
- Downtrend (lower highs)
- Sideways trend (ranging)
Here are some important things to remember using trend lines in crypto trading:
The steeper the trend line you draw, the less reliable it is going to be and the more likely it will break.
And most importantly, do not never draw trend lines by forcing them to fit the market. If they do not fit right, then that trend line isn’t a valid one!
