Would you say I drew this trend line the correct way?

Would you say I drew this trend line the correct way?

The issue is that I didnt have many points to go thru...

 

It looks good to me.

Try a smaller TF if you are looking for a tighter line.

Im new so let someone else confirm or deny these statements.

 

Trying to buy the (possible) breakout, eh?

 

doing some figuring ahha lool. i hate that i cant trade stocks and options on the weekend. so i need to add something thats available all the time.

 

Sort of but weekly is a long time. A lot can happen in a week, so I guess if you want to wait for a candle to close, it would be useable. Secondly, move the lines to actually cross the wicks, or well into the wicks. The wicks are sort of gray zones where the chances of being able to trade in them is smaller than the body. Of course, this is less so with weekly. I would suggest while learning: 1) try to get as many body and wicks that make sense, then 2) draw Support-resistance levels, then 3) erase them all and step back. Then draw them a final time. Then you can change to a line chart to see how that looks. That will help you get less biased lines. Hope it helps.

 

I see you're omitting two swing high tails? Why is that?

There's many ways to draw such a line and that just illustrates the subjective nature of this stuff. Solution? Work out some definite rules for how to draw them.

I think this is how Victor Sperandeo suggested to do it for a down trend line:

1. Determine trend line starting point, i.e., start of trend.

2. Draw trend line between the starting point and the last minor high preceding the lowest low such that the trend line contains all prices.

So, even with this in place you need to determine what exactly is the start of the trend. My interpretation if I use the same starting point as you then would be this:



Using the same rules for the up trend line - it looks not quite correct.

Still, you're at a disadvantage as price may very well retrace back down to that blue trend at the bottom.

Maybe it's better to buy swing lows and sell swing highs instead?

Personally, I don't use trend lines. Only if they're very, very obvious.

 

I think the weekly chart is far too long.
I'd probably draw a channel on a daily chart.

 

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YES. You can also draw it thru closes ….... I tested a moving average based on the highs;
so far I use closes to closes……………………………………………….[I now see thats a weekly or monthly/2 year =thats better than daily charts, for support/resistance ]

 

Do Trend Lines Work?

 

I don’t see any trend there myself to draw lines on, that’s just a ranging marker to my eye.

In my daily routine I’d just skip over that chart and on to the next one instead of forcing something.