65-Day Academy · Day 11 · Reading Charts
Trendlines — Drawn Honestly
The rules
An uptrend line connects at least TWO rising lows (a third touch confirms it). Draw along the LOWS of candles (wick extremes or bodies — pick one convention and stay consistent). Steepness matters: a trendline you can't draw without squinting (near-vertical) will break on the first normal pullback; healthy trends run at sustainable angles.
Breaks and their meaning
A trendline break is a warning, not a sell signal by itself: trends survive breaks of one line (a new line can be drawn from more recent lows). What matters is the COMBINATION: trendline break + break of the last higher low + volume = structure change. One clue is a clue; three aligned clues are a signal.
What you'll practise
True or false: one close below an uptrend line means the uptrend is over.
10 XP in the app · introductory
Sources
- TrendlinesInvestopedia
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All lessons are for educational purposes only and are not individualized financial advice, a recommendation, or a solicitation to buy or sell any security. Options involve substantial risk and are not suitable for every investor.