Trendline Trading Strategy Secrets Revealed 21 Full 2021
(Touch 1) (Touch 2) (Touch 3 - Validated!) /\ /\ /\ / \ / \ / \ ________/____\__________/____\__________/____\______ Trendline 3. The 30-to-45 Degree Sweet Spot
Smart Money Concepts (SMC) often deliberately push price through a visible trendline to trigger stop-losses (liquidity grabbing) before moving in the original direction. Look for a sweep (sharp dip followed by an immediate reversal) rather than a clean breakout. Phase 4: Advanced Techniques (Secrets 16-21)
Trendlines often become channels. Secret #8: When a trendline acts as support for 5 touches and then breaks, it becomes . Draw a parallel line. The moment price breaks the original support line, your entry is a short at the upper parallel line.
Once price moves a certain distance in your favor (e.g., 1:1 Risk-Reward), move your stop loss to break even. Trendline trading protects capital; you never want a winning trade to turn into a loser. trendline trading strategy secrets revealed 21 full
A trendline should never cut through the body of a candle. If it does, it is invalid. The line should only touch the outer boundary of price action.
How price reacts to the trendline tells you the strength.
: Look for areas where trendlines intersect, as these areas can provide trading opportunities. (Touch 1) (Touch 2) (Touch 3 - Validated
The strength of a trendline increases with every successful touchpoint. A line tested five times is structurally more reliable than a line tested three times. Each consecutive bounce confirms that institutional algorithms are actively matching buy or sell orders at that precise geometric boundary. Part 2: Advanced Structural Dynamics 6. The Trendline Flip Phenomenon
Once price has bounced off your trendline and traveled a distance equal to your initial risk (a 1:1 risk-to-reward ratio), you must immediately move your stop-loss order to the exact price level where you entered the trade. This completely removes the financial risk from the table, giving you a stress-free, "free shot" at capturing a much larger market move. 21. Systemic Journaling and Performance Metrics
Institutions hunt stops at round numbers ($1.2000, $50.00). Secret #20: Draw your trendline 3-5 pips above the round number. When price hits the round number, stops trigger, wicks shoot through, but the trendline holds. Enter long on the wick rejection. This is the highest probability setup (85% win rate). The moment price breaks the original support line,
The difference between a losing trader and a profitable one is not intelligence; it is in execution. You now have the 21 full secrets. The only thing left is to place the cursor and take the trade.
Most trendlines go from left to right (top-left to bottom-right or vice versa). Secret #21: The goes from bottom-left to top-right for a short setup.
Represents healthy, algorithmic, institutional accumulation or distribution. 3. Wick vs. Body Consistency
Guide to exploring the Trendline Trading Strategy | Capital.com
There is no "correct" way, but consistency is key.