if 90% of the investor believe in this and they all placed buy order at the moment the price touches trendline from above. Would the price bounce back? of course it will. so you need to figure out what's the chance (%) the price reacts to the trendline then have proper risk/reward set up for it. You then would be able to calculate your return of investment. the people who do not believe in TA just can't believe others would place orders at the trendline. If people don't place orders on the trendline. How come the price so often would react to it??? if you find a certain condition would make trendline work for maybe 70% of the times (combine with RSI, or other indicators) and you would place an order with risk/reward of 10 points, so 10/10. so for every 10 trades, u'd win 7 times of 10 points each, total of 70 pts. the 3 losing trades would cost you 30 pts. you are looking at 40% ROI you can then start adding more creative strategies in it. for example, you can buy twice as much position when the price move above the previous high before the pullback. use your imagination, don't let the ones who lack imagination hold you back. it's your own responsibility to test out different strategies and figure out what works. gl pic link
Trendline definitely works in trading and it will help you to keep your stop loss very accurately which controls the risks involved. You will be able to notice that the traders who are in a buy position are in control, if the price goes above the trend line.
i'd do this instead either one is fine, but I'd prefer a better symmetrical drawing. I can ignore the chart that's asymmetrical. You don't need to trade when you don't understand or don't like the drawing. that's the most important lesson I learned in the past week
the crux of the biscuit was the Hard Right Edge, as they say. the last candle on the right. as done here... https://elitetrader.com/et/threads/scalping-1-minute-time-frame-analysis.344107/page-2#post-5128778
"Resistance drawn with these two points." https://www.elitetrader.com/et/thre...t-right-here-baby.335635/page-16#post-5174905
Most of the trades in US are based on computer calculation not human and machines dont use trendline.