How To Trade TRENDLINES In UNDER 17 Minutes

do you ever wonder why some Traders are consistently profitable and others aren't using trend lines the difference between the two is how each one uses the trend lines or utilizes the trend lines hi Traders welcome to my channel I am

Tory trades and I have been trading the markets for over a decade now I'm here to share valuable insights to help elevate your trading so in this deep Dive Master Class we're going to be going over understanding trend lines

what they are and why they're indispensable drawing accurate trend lines step by step and then the strategy how to implement these trend lines to ultim Ely make decisions in the market I'm also going to show real world

examples realtime examples with real trades and real-time Market data and even some Advanced tips so if you don't already know trend lines are the foundation of technical

analysis they represent the direction and speed of a specific instrument and they ultimately help Traders identify Trends and possible reversals so what types of trend lines do we have we have two types of trend lines we've got an

upward trend line which connects higher lows indicating bullish movement and we've got a downward trend line which connects lower highs and signals bearish movement bullish trend lines bearish

trend lines upward trend lines downward trend lines now how do we draw accurate trend lines this is the fun part so let's get into actually drawing these trend lines and how I utilize them you have to start with a time frame now what does that mean you could be a day trader

swing Trader a long-term investor how do the time frames come into play when drawing our lines and the next thing is Reliable Tools what tools are we going to be using to draw these trend lines I'm going to be be using a platform such as trading View and I'll be using the

drawing tool to help me draw these trend lines now let's get into some actual chart time here we go all right we are opening up trading view I've got a naked chart on the screen right here in front of your eyes I'm going to show you guys

how I mark up my charts how I use time frames and the tools and which highs and lows I use to utilize my trend lines and how I draw them I'm going to start by prefacing anytime I mark up my chart

with a completely new instrument I will always do a top- down analysis I am always going to start on the highest time frame that I Poss possibly can so right now we are looking at the ym this

is actually the M ym this is the micro e mini Dow Jones this is a Futures instrument and this is the micro version of the Dow so if you guys know what the Dow Jones is it's an index and through

the Futures Market you are able to trade the indexes here or the indices all right so we're going to start in the monthly time frame so we're going to hit the M up here in the top left and now when drawing my trend lines the reason I go to the higher time frame is because I

want an overall view I want to know overall from the far left to the far right the hard right Edge where the price is trading at right now I want to know overall which way is this trending and I want to go ahead and mark up my

chart as well so we're going to start from the beginning marking up our very first trend line now ironically you would think I would use the trend line tool in trading view but I actually don't because the trend line tool and

trading view gives a point a and point B and it stops I want a point a and a point B and then I want the line to go indefinitely in One Direction so I actually use the ray tool when drawing my trend lines all right when drawing our very first upward trend line on a

chart we're looking looking for the lowest point we see on the screen that's point a point B is going to be a higher low where the price has not yet intersected and the most recent higher

low so let me see if I can help you guys understand this we're not going to use this higher low here because price has already crossed the line it's already intersected so I like to visualize this line as though it's truly holding the

price up now here would be pretty accurate but I like to take this point B and drag it to the most recent touch point which would be right here back in

October 2nd 2023 so now we have our very first upward trend line point a point B Point c three touch points but when using the ray tool it only gives us two

points to adjust all right we have drawn our very first upward trend line now this isn't the end so we have just simply drawn one trend line on the monthly time frame we need to continue doing our top down analysis so that

means we need to work our way down to lower time frames so we're at the monthly let's go down to the weekly and essentially what I'm trying to do is modify my lines to make sure they're a little bit more accurate as you can see it's a little bit off now so I need to

adjust it to this new low and then what I'm doing is I am capturing as much of the movement of the price as I possibly can so I'm going to continue to connect these trend lines and it will start to

look like a fan of trend lines each new line will use the previous point B as its new point a and let me show you what I mean so I'm going to continue to mark up my charts and draw steeper trend lines I'm now in the weekly time frame

I'm going to go back to that Ray tool and now my point a is going to be my previous point B that pre previous recent touch Point boom and now same scenario I'm looking for the next low the next most recent low now you'd think

it would be here but there's an even more recent low over here so I'm going to take this point B and Boop move it right here so now we've got yet another one two three touch Point upward trend line same as the last one that we drew

in the monthly time frame but now we're in the weekly and now we have truly capitalized or identified as much movement as possible so we've got one trend line and we've got another trend line here we are truly following the

price in this direction that it's going in we're we're utilizing all of the movement here all right we're in the weekly we got to continue to go down we're going to go to the Daily now there's going to be some instances where you move down in time frame and there's not anything different you can do

there's no other trend lines that you can draw so you'll continue to Simply move down time frames so we're in the weekly let's move down to the Daily all right in the daily time frame same scenario here we're going to use our

previous point B which was right here as our new point a and then we're looking for the next most recent low Boop right here without price intersecting all right we're at the daily let's go to the 4-Hour time frame now as far as our

upward trend lines go we cannot come in any steeper this is an instance where there isn't a change or there isn't a difference there's nowhere we can draw an additional trend line from the daily to the 4our but what I can see is now we

can finally draw our very first downward trend line so we've got our upward trend lines but now we need to find our downward trend lines when drawing downward trend lines it's the same concept that we Ed for the upwards but opposite so for the downward trend lines

we're looking for the highest point we see on the chart the highest point I see on the chart is going to be right here at 45 224 is so that's going to be your point a now point B is going to be a

lower high a recent lower high where price has not yet intersected that's as far as we can go with the downward trend lines but I can see a steeper downward trend line that I can draw right here in the 4-Hour time frame without having to go down to the 1 hour yet so I'm going

to come in with another trend line new point a is always going to be previous point B all right beautiful touch points here now in the 4-Hour time frame that's as far as I can go but now I can go down to the 1H hour time frame this is where we're going to stay how do you know what

time frame you stay in or which time frame you stop in and that's going to be which time frame you have committed to or decided to trade in I don't jump time frames I don't go from lower back to higher looking for sooner entries I

commit to one time frame and look for my entries and exits in that specific time frame but when marking up my charts for the first time I will always do this top down analysis so that's how I know I'm going to stop in the 1 hour time frame

but I do see some adjustments I can make to my lines and I can see a steeper trend line that I can draw so we're going to continue to use our previous point B as new point a and here we go this is a lower high right here now I

can even come in a little bit steeper previous point B new point a and here we go all right if the price of the ym can continue down right here this will be a three touch Point trend line right here

now we've done all of our analysis we've done all of our chart markups from top down from the monthly to the weekly to the Daily to the 4our all the way down to the 1our time frame where I'm going to make my trading decisions so I have

demonstrated how to mark up your charts and how to accurately draw your trend lines next how do we incorporate these trend lines into our trading strategy and how can they provide Clarity and confidence we're going to go over two

different types of examples when trading trend lines there are two options we can trade a breakout strategy or a bounce strategy or a combination of the two so when incorporating the bounce strategy when price gets to one of our trend

lines we're anticipating that the price is going to bounce off of that trend line suggesting that this is going to be a trend continuation and I'll give you an example in just a moment and then the breakout strategy which is my all-time favorite this is when price breaks

through a trend line in indicating a potential Trend reversal okay so let's go over the concept of trading the bounce of a trend line so right here where the price is at now of the ym we're going to go ahead and take a short

position anticipating that this is going to be a trend continuation that this is simply just going to be yet another touch point to this downward Trend and it's going to continue down so this is where we would place a sell order we're

in a short position now now how do we mitigate our risk so we are currently in a short position anticipating that the price of the Dow is going to continue down and just simply bounce off of this trend line there's going to be many ways

of mitigating risk understanding the capital that you have to trade the capital that you have in your account and how much percentage in conjunction to the capital should you be risking a great rule of thumb especially for beginners is going to be anywhere

between 1 and 2% of your Capital now let's say you have an account size of 128,000 that means we could risk anywhere between $1 to $2,500 in this specific trade so now that's a good rule of thumb to know okay if this trade

doesn't work out we're willing to risk $1,000 to $2,500 but now let's see if we actually need to risk that much in this specific F set up so where do we put our stop loss our stop loss is going to go on the

other side of our downward trend line so if the price doesn't bounce off of this downward trend line we know okay time to close this trade time to take a loss now in this scenario we only need to risk

$50 if the price comes up to 43,7 19 we know all right this wasn't a bounce of the downward trend line I'm willing to lose $50 on this trade so we have our stop loss in place if the price

comes up breaks this downward trend line and hits this 43719 $1 we have just taken a $51 loss but now what happens if the price continues in our favor the coolest part about this strategy is we don't have a

takeprofit set now you're more than welcome to add one and to have one if you don't want to hold this trade for that long if you're simply just looking to get a quick Buck or build that confidence or just rack up those small wins absolutely use A takeprofit and A

good rule of thumb for take profits is always to use an area of support or resistance where the price is likely to hit and turn around multiple times so putting our takeprofit at

43,44 is an ideal takeprofit since the likelihood of the price getting back to this area which it's done in the past and then turning around is very high we could simply add a take profit here making $91 for this trade or my favorite

way to do it is allow the trend to play out allow the trend to move if the price of the Dow continues in our favor which I'll do a little path tool just to give you an idea if it continues down pulls

up a little bit comes up comes down continues along this downward trend line we're able to take our stop loss and Trail it into profit so it's no longer

at that negative $51 now we Trail it and we move it along that trend line but as soon as price breaks the downward trend line that we're anticipating it to follow then we know it's time to take that profit so now let's say that price

does finally break that means we would have been able to move our stop all the way down to 43358 Knocking us out of our trade with a profit of $129 so just think of it

like manually moving your stop into profit as price progresses as price moves in your favor along that trend line and then you simply just wait for the price to break out of that trend line and take your profits or if the trade doesn't work out you'll know

pretty quickly especially when trading the Bounce by putting that stop on the other side of your trend line where we originally had it here at this 43719 now let's go over another scenario the breakout method so we're going to

close this trade here and go over a second scenario since we don't have a breakout of price in this example I'm going to draw an example with the path tool so let's say that the price of the

ym continues down and breaks this upward trend line using the breakout strategy with trend lines we enter when price breaks a trend line instead of bouncing so we are anticipating that this is going to be a trend reversal so a

reversal of this upward trend line now this upward trend line was drawn in a higher time frame so it holds a little bit more weight so we're thinking that this higher time frame upward trend is about to get a reversal and we're going to be continuing down on this new trend

here so let's say that we consider taking a short position here we would think short positions because price broke instead of thinking short positions because price bounced so we're thinking short positions right here at

43,00 47 there we go we've got our short position right here now how do we mitigate the risk it's going to be the same exact scenario that we mitigated our risk using the bounce but what's different about this strategy is our

entries are based on different reasons so instead of anticipating a bounce we are anticipating a trend reversal so we're still thinking short positions right here at this 43413 is and now where does our stop go we're going to put as though if the

price was to come up and break our downward trend line we would put our stop somewhere around this 43592 if the price was to come up and break we would think okay close me out take my loss at it's probably going to

be around if this is the same scenario it probably be still around that $50 and this is going to be same scenario so we're going to continue to stay in this trade as long as the price continues along this downward trend line so same

exact scenario for the exits you're going to trail that stop if price progresses in your favor you get to move that stop into profit if the price doesn't work out and breaks this downward trend line then we take our $50

loss now we can increase position size I just used one contract as an example before but since this account size on the the paper trade is 128,000 we could

risk anywhere between $1,000 and $2,500 for each trade here that 1 to 2% or especially for the newbies and the beginners just experimenting with one micro is an excellent place to start especially in the Futures market now the

exit criteria is exactly the same as the bounce as long as the price continues along this trend line we're happy we're making money we get to move that stop into profit if it doesn't work out we took that $51 loss and then we're on to

the next trade now let's go over a real world scenario where I used this method on a live account so we have our upward trend line here we've got one two three touch points the price broke out of it that was my indication to take a short

position since price broke out of the upward trend line and then what kept me in where did my stop loss go stop loss went on the other side of the downward trend line so I was willing to risk $8,900 if the price as soon as I got in

broke the downward trend line and then how long do I stay in for so remember that scenario where I said if you're looking to close profits to take those small wins or you're not looking to hold that trade for as long as possible you

want to look for an area of support or resistance as a takeprofit so we have our entry based on the break of a downward trend line and then the price got to an area of support where it's very likely that the price of crude oil

here was to hit and turn around hit and turn around it hit and turned around here so I closed my trade here at this 7226 is area and made a profit of

27,600 I had a 3.11 r here and this is a real example of an actual trade that I placed using the breakout strategy so here's a few Advanced tips for you Traders already utilizing trend lines when you done your top down analysis and

you've marked up your charts and placed all your trend lines as price progresses price will intersect and cross through those original trend lines so you're going to have to adjust your trend lines on a regular basis to adapt to the

market that means utilizing new Point A's and new Point B's steeper trend lines or adjusting the trend lines that have already been crossed to either a new low or a new high making sure the price hasn't intersected yet and a huge one that I went over already is

incorporating the multiple time frames incorporating that top- down analysis seeing what price has done overall in a much higher time frame gives you such a clearer view of the overall direction of a trend and then as you move from that

higher time frame you go into those lower time frames and then you stop at the one you've decided to trade and then the last tip was utilizing those areas of support and resistance for take profits one if you're not willing to hold that trade for as long as possible

and two if you're just simply looking to rack up those small wins and look for a sooner area to take profit so this was a complete guide of how to do your top down analysis how to accurately draw your trend lines and utilize a strategy to help you make decisions based on

these trend lines I encourage you guys to mark up your chart and integrate these strategies into your trading as always guys hit the link in the description to be part of my community where I teach this strategy much more in depth you can learn alongside my team

and my community all right friends thanks for joining me today that's all I have hope this was helpful