Beginner 5 min read
How to draw a trendline
Most retail trendlines are useless. Here's the 3-touch rule that actually filters signal from noise.
A trendline connects swing lows in an uptrend (or swing highs in a downtrend). The rule that separates a real trendline from wishful drawing: it needs at least three touches before you trust it, and each touch should show price genuinely reacting, not just brushing past.
Steeper trendlines break more often — they represent unsustainable momentum. The trendlines worth trading are the shallow, patient ones that have held for weeks, not the ones drawn through a single parabolic spike.
When a well-tested trendline finally breaks with a closing candle and volume, treat it as a real structural shift, not noise.