Most traders draw trendlines on their charts as if they’re magic predictors of where the market will go.

But here’s the problem: trendlines aren’t crystal balls.

And if you don’t draw them properly, you’ll keep getting stopped out just before the price takes off.

In this post, you’ll discover:

• The real secret to using trendlines effectively
• How to draw them like a professional trader, and
• Strategies to trade them with higher accuracy.

Let’s go!

What are Trendlines?

A trendline is not just a random line. It’s a visual map of market psychology.

• It highlights where buyers or sellers have stepped in before.
• It shows where they might step in again.
• It reflects the ongoing battle between bulls (buyers) and bears (sellers).

In many cases, trendlines also work because of the self-fulfilling prophecy effect.

Thousands of traders worldwide are watching the same levels.

When enough people react at those levels, the price often responds.

• In an uptrend, trendlines connect higher lows.
• In a downtrend, they connect lower highs.
• In a range, price bounces between equal highs and lows.

Think of trendlines as a translator: they convert raw price movements into clear structures you can trade from.

How to Draw Trendlines the Right Way

If you want trendlines to work, you can’t just throw them on a chart.

Here’s a pro approach:

1. Wait for a Change of Character (CHOCH): Confirm that market structure has shifted before placing your line.
2. Use a Line Chart First: This filters out the noise from wicks and keeps things clean.
3. Draw Multiple Options: Test two or three possible lines to see which the market respects most.
4. Switch Back to Candlesticks: Confirm which line fits naturally with price action.
5. Connect Only Two Points: The goal isn’t to trade the first two touches but to prepare for the third touch.
6. Treat Trendlines as Zones: Price can overshoot slightly and still respect the area.

Pro Tip: Never trade a trendline touch blindly. Always wait for confirmation.

The Bounce Strategy (Trading the Third Touch)

One of the most reliable trendline setups is the bounce strategy:

• Connect two points, then look for a trade on the third touch.
• Before entering, wait for confirmation.

Here are three powerful confirmation tools:

1. Stochastic RSI: Look for the K-line crossing from overbought/oversold zones.
2. Candlestick Patterns: A bullish or bearish reversal pattern forming right at the trendline.
3. Fibonacci Golden Zone: If it aligns with the trendline, it adds extra confluence.

Oftentimes, the Stochastic RSI alone is enough.

But if all three confirmations align, that’s a high-probability trade setup.

Risk management: To manage risk here, do these:

• Place your stop-loss just beyond the recent swing high or low.
• Target at least 2:1 risk-reward, adjusting for market context.

Beyond the Bounce: Breakout Strategy

Another way to trade trendlines is the breakout strategy.

Instead of trading bounces, you look for the price to break through the trendline, confirm, and then move in the new direction.

You can learn more about this from the video above.

Final Thoughts

Trendlines can be powerful — but only if you know how to draw and trade them correctly.

The key takeaways:

• Don’t treat them like magic lines.
• Draw them with precision.
• Always confirm before entering trades.

When combined with other strategies like Supply & Demand, Break of Structure (BOS), and Liquidity Sweeps, trendlines become even more effective.

If you want to level up your trading, I invite you to join our community:

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Now, over to you: Do you currently use trendlines in your trading?

Have they helped or hurt your results?

Share your experience in the comments; let’s discuss!