Like most forms of technical
analysis, trend lines are often
abused, misused, and for the
most part are not drawn with
any sort of consistency.
What they mean
How to draw them
1-2-3 reversal
Lower demand –
smaller impulse moves
Being in tune with the
swings can give you a
“heads up”
Retest of the highs
Consolidation
Complex correction
Steady trend leading to
Acceleration
Look for pullbacks after
these moves
You could be looking at
least at a temporary
top/bottom
Don't let the fear of missing
out on a trade lead you to
jump in just as the market
begins the turn.
No hard and fast
rules…..but you must be
consistent.
"Lessons From A Wall
Street Master“
Victor Sperandeo
Start at initial pivot
New highs/lows = adjust
Do not cut through price
Use the initial anchor
where price changed
trend
Each time price makes a
new high, use the
previous low to draw to
from the anchor
If the trend line starts to
cut through price, there is
a change in the rhythm of
the market and possibly a
change in trend.
Use a new anchor point
to fan the trend line
Continue to meet new
higher lows until a reversal
pattern emerges
en.wikipedia.org/wiki/Thomas_DeMark
Connecting pivot levels
that are at least a three
candle pattern
How you use this
information depends on
how it speaks to you
1-2-3 Reversals With
Trend Lines
Correction on a higher
time frame is a down trend
on a lower time frame.(opposite higher time frame downtrend)
Trend lines show rhythm
of market
A skill you can master…
but maybe never execute
Trend lines can show you
zones of opportunity
Consistent practice