How to use Trendlines in your Trading whether it’s Stocks, Options, Forex, Futures or CFD’s. If you don't quite know the best way to use Trendlines, then you need to read below!

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More on the 2 Part Video Series on Drawing Perfect Trendlines Everytime

Trendlines are an extremely difficult tool to master. What if there was a way to draw perfect trendlines every time. The art of drawing a trendline comes down to intuition and experience and it is this, that makes it difficult for amateur traders just starting out. But there is way to draw trendlines in a very systematic way, so that if every person on earth used this system, then everyone's trendlines would look exactly the same! Wow!

Experienced traders use gut feel and experience to determine where they draw a trendline. But get several of these people together and tell them to draw trendlines, look what you get!

So why is this? If part of your trading plan is to trade support and resistance, then a lot of your entries and exits are going to be positioned according to where your trendlines are! Even when using horizontal support and resistance lines, what are you applying them to? And here lies the problem. Have a look at the charts below. Some trendlines are drawn using the highs and lows, others using closes and opens, and then there's some with a mixture. Very confusing! 

Experienced traders have their own methods which evolve over time, but primarily, they'll look to use the close of prices, or to find a way to get as many touches on a line to give it strength, all of which work, but as a beginner it can be frustrating not quite knowing where to put them.

What I'm suggesting is to use a universal approach while starting out until you become a little more experienced and you can trust your intuition. This method is a mechanical method, meaning there can only be one way, but there is also an extra dimension enabling you to determine the strength of the trendline also.  

If you'd like to see a 2 part video tutorial explaining this method of drawing trendlines then fill in the form below.