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- Downward Trend Lines: These connect lower highs and signal bearish movement, suggesting that selling pressure is dominant.
Understanding these two variations is critical for effective trading strategies.
Drawing Accurate Trend Lines
Starting with Time Frames
The first step in drawing accurate trend lines is identifying the time frame relevant to your trading strategy. You might be a day trader, a swing trader, or a long-term investor, and each will require a different approach to charting trend lines.