: The angle of the line indicates market conditions. Extremely steep lines are often unsustainable and prone to sharp reversals, while shallow angles in a downtrend can signal bear exhaustion. High-Probability Trading Setups The Bounce (Trend Continuation) :
When price aggressively accelerates away from a trendline, it becomes overextended. This gap acts like a stretched rubber band. Do not chase the market here; wait for the inevitable mean reversion back to the trendline before entering. Part 3: High-Probability Entry Strategies 10. The Third-Touch Bounce Entry
Below, I reveal 21 complete secrets—each one a full trading setup or rule—that professional proprietary traders use to extract consistent profits from trends. trendline trading strategy secrets revealed 21 full
Trendlines rarely exist in isolation. When you draw an outer trendline, look for shorter, counter-trend lines forming directly above it. A downward-sloping bull flag that terminates right at a major ascending trendline is one of the highest-probability setups in technical analysis. 15. Track the Multi-Touch Decay Principle
Where do you put the stop? Most put it 5 pips below the trendline. Wrong. Secret #10: Place your stop behind the nearest swing high/low inside the trend, not the trendline itself. If that swing is 50 pips away, you wait for a better setup. The trendline is a destination, not a guarantee. : The angle of the line indicates market conditions
: Use multiple time frames to draw trendlines, as this will provide a more comprehensive view of the market.
This feature requires that a trendline setup on a lower timeframe (e.g., 15-minute) must be validated by the dominant trend on a higher timeframe (e.g., 4-hour or Daily). Uptrend Validation This gap acts like a stretched rubber band
: Use multiple trendlines to identify the strength of a trend, and to look for areas of support and resistance.
How many validated touches did the line have prior to entry? Did the trade occur at a Confluence Zone?
A trendline bounce without volume is a dead cat bounce. Secret #9: On the breakout candle, volume must be 1.5x the 20-period average. If volume is silent, the trendline is still intact.