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

seem to.

 

It depends what you are drawing them for. Bored weekend entertainment? Sure they are fine.
For actual trading, as others have pointed out, there is too much data going back to the time when get rich quickers ruled BTC price movement.

Now you have much larger entities like Grayscale, MSTR and individuals like Paul Tudor Jones throwing some money around. BTC's price movement is becoming more correlated with the stock market and we are seeing the manifestation of all the typical consolidation to price discovery to consolidation patterns.

For Sunday afternoon entertainment, before the US futures open here is an example of what I'm talking about. Everywhere you have price consolidation will show as a peak in the horizontal histogram. Right now price is above the last acceptance level so looking all right for the BTC HODLers.



https://app.intotheblock.com/coin/BTC

 

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Trend lines or moving averages/trend lines are so hated; thats why they can work with discretion.
2019 was a sideways slop range/I would want something better unless I was wanting an inverse/short trend/LOL
Pretty good uptrend lines in 2020+ deep drawdowns. [I like 3 year /10 year/I year charts myself, but trend lines are not so helpful on those as 3 years
My remarks apply to stocks ETFs + sometimes leveraged ETFs; not tulips]I do have some tulip time stainless steel flatware my banker dad told me about; it looks like silver, but thats just looks.Made in Holland/hi finish/LOL]

 

https://www.elitetrader.com/et/threads/does-trendline-work.335191/

 

You really out did yourself here...

 

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Almost messed up big here; until I remembered my 10 year charts + tulip time stainless steel flatware, my banker dads told me that tulip time deal --as a kid.
NOT sure my moving averages would work on my selling/resale of my tulip time flatware;
but I would not blame trendlines on that/LOL

 

No but it's funny, shhhhh!!

 

Yes, but in general trendlines perform better when we use them as support and resistance lines : to join an existing trend (on a pullback) or to fade a trading range (near the upper or lower level of the range).

For breakout techniques they work half the time, so confirmation is needed. If the breakout is real the position can sometimes deliver fantastic profits .

 

Very obvious trading setups rarely work.

And when they do work they usually give you a very hard time (hit your stop first) before going your way...

 

Absolutely, if you drew it before the breakout. Now your upper bearish trendline is clearly broken.

Best,