How to Draw Trend Lines Perfectly Every Time [2019 Update]

    Trend lines have become widely popular as a way to identify possible support or resistance. But one question still lingers among Forex traders – how to draw trend lines?

    In this lesson, we’ll discuss what trend lines are as well as how to draw them. I’m also going to share a secret way that I like to use trend lines to spot potential tops and bottoms in a market, so be sure to read the lesson in its entirety.

    What Are Trend Lines?

    As the name implies, trend lines are levels used in technical analysis that can be drawn along a trend to represent either support or resistance, depending on the direction of the trend. Think of them as the diagonal equivalent of horizontal support and resistance.

    Exclusive Bonus: Download the trend lines PDF cheat sheet to learn helpful tips and techniques on how to draw these levels and use them to find setups.

    These trend lines can help us to identify potential areas of increased supply and demand, which can cause the market to move down or up respectively.

    Let’s take a look at a trend line that was drawn during an uptrend.

    gbpusd daily trend line support

    Notice how in the GBPUSD daily chart above, the market touched off of trend line support several times over an extended period of time. This trend line represented an area of support where traders can begin to look for buying opportunities.

    Now let’s take a look at a trend line that was drawn during a downtrend.

    audnzd forex trend line resistance level

    Similar to the GBPUSD uptrend in the first chart, this AUDNZD downtrend touched off of our trend line several times over an extended period of time. The difference is that the trend line above represents a downtrend, during which time it acts as resistance, giving traders an opportunity to look for selling opportunities.

    How to Draw Trend Lines Correctly

    Now that we have a good understanding of what trend lines are, let’s go over how to draw them.

    The very first thing to know about drawing trend lines is that you need at least two points in the market to start a trend line. Once the second swing high or low has been identified, you can draw your trend line.

    Here is an example of the first two swing lows that have been identified.

    how to draw a forex trend line during an uptrend

    Notice in the chart above, we have two main points at which we can start to draw our trend line. Once this level has been established, we can start to look for bullish price action to join the rally.

    Sure enough, just a few weeks later a bullish pin bar emerged at trend line support.

    trading a forex trend line at support

    The bullish pin bar above provided a signal to traders that the trend line was likely to hold. This gave traders an opportunity to buy at support to join the rally.

    3 Keys to Drawing Trend Lines Effectively

    There are three very important keys to drawing effective trend lines.

    • The higher time frames will always produce the most reliable trend lines, so start there and work your way down
    • Most trend lines you come across will have some overlap from the high or low of a candle, but what’s important is getting the most touches possible without cutting through the body of a candle
    • Never try to force a trend line to fit – if it doesn’t fit the chart then it isn’t valid and is therefore not worth having on your chart

    Let’s take a look at each of these in greater detail.

    Use the Higher Time Frames for Drawing Trend Lines

    Just about everything I do in the Forex market begins on the daily time frame and drawing trend lines is no exception. One reason I prefer the daily time frame for drawing trend lines, besides the fact that I do most of my trading from this time frame, is that it represents an extended period of time.

    This brings me to a very important rule regarding trend lines. The longer a trend line is respected, the more important it becomes. A trend line that extends over two years will always be considered more important than a level that only extends the course of two weeks.

    Here is a great example of a trend line that was drawn from the daily time frame.

    gbpchf trend line during rally

    In the GBPCHF daily chart above, after the second swing low was made we could have drawn our trend line. Notice how the market formed a bullish pin bar at the third touch from this trend line. This is a perfect example of the type of buying opportunity a trader would look for using trend line support.

    Another higher time frame that I like to use to draw trend lines is the weekly chart. This time frame is great for identifying potential targets during uptrends or downtrends on the daily time frame.

    Here is a great example of how a weekly trend line on CADCHF can be used to identify a potential target.

    cadchf weekly trend line resistance

    The chart above shows a weekly trend line that can be extremely useful to identify a potential target for CADCHF. The daily time frame is in an uptrend at the moment, so this weekly trend line would give us a great starting place to look for a potential profit target.

    Trend Lines and Overlap

    One of the most common questions when it comes to drawing trend lines is, should they be drawn from the high/low of a candle or from the open/close of the candle. The answer to this question depends on the trend line.

    It’s very rare to find a trend line that lines up perfectly with highs or lows. Similarly, it’s rare to find a trend line that lines up perfectly with the open or close of each candle.

    Let’s take a look at an example

    forex trend line

    Notice how the trend line above does not perfectly line up with the highs of each candle, nor does it line up perfectly with the open or close of each candle. This doesn’t mean that the trend line is invalid. What’s important here is that the weekly chart above never closed above this level.

    The most important part of any trend line is to get the most touches without the level cutting off part of a candlestick. If you find that a trend line cuts through the body of a candlestick, then the trend line is likely not valid.

    Never Try to Force a Trend Line to Fit

    This is perhaps the most common pitfall Forex traders make when drawing trend lines. We call this “curve fitting” and it happens when a technical trader is so convinced that a level should exit, that the trader begins to try to make the level fit the price action on the chart.

    This brings me to the most important part about drawing trend lines, or any support or resistance level for that matter. The best trend lines are the most obvious ones. So if a trend line doesn’t fit well, it’s probably best to move on to another pattern.

    How to Use Trend Lines to Spot Potential Reversals

    As promised, I’m going to show you a way that I like to use trend lines to determine the strength of a trend. Moreover, this method can help you spot potential reversal points in the market.

    At this point in the lesson, you know that a trend line can be used to identify potential buying or selling opportunities. But this only works as long as the market continues to respect the trend line as support or resistance. So what happens when the market no longer respects the level?

    This is where you have a chance to trade a market as it makes a turn from a major swing high or low. Below is an example of a market that broke trend line support and then retested that same trend line as new resistance.

    gbpchf trend line break and retest

    We can see in the GBPCHF daily chart above, that the pair had respected a trend line for some time. However once the market broke trend line support, it quickly retested former support as new resistance. This retest gave traders the opportunity to sell the pair, which would have resulted in a substantial gain over the next several days as the market sold off.

    One thing to note about using trend lines in this way is that it works best when you have a really clean trend line with three or more touches. The more obvious the trend line is, the better this strategy will work.

    We can also use this strategy to identify a bullish reversal.

    usdjpy former trend line resistance becomes support

    Notice how shortly after breaking trend line resistance, the market came back to retest the trend line as new support and formed a bullish pin bar in the process. This gave price action traders an opportunity to buy just before the market rallied for 800 pips.

    This is a great way to use trend lines to spot potential reversals in the market. It is without a doubt one of the best ways to catch a big move as a market changes direction.

    Summary

    I hope this lesson has given you a better understanding of how to draw trend lines and how they can be used in the Forex market.

    We’ve covered a lot in this lesson, so let’s recap some of the important points.

    • Think of trend lines as the diagonal equivalent to horizontal support and resistance levels
    • Trend lines can help traders identify buying and selling opportunities that occur within a strong trend
    • The higher time frames will always produce the most reliable trend lines, so start there and work your way down
    • Most trend lines you come across will have some overlap from the high or low of a candle, but what’s important is getting the most touches possible without cutting through the body of a candle
    • Never try to force a trend line to fit – if it doesn’t fit the chart then it isn’t valid and is therefore not worth having on your chart
    • A break and retest of a trend line that had three of more touches can often mean a reversal in the market and a potential buying or selling opportunity

    General FAQ

    What is a trend line?

    A trend line is a diagonal support or resistance level on a price chart. It’s often used to identify support during an uptrend or resistance during a downtrend.

    How do you draw trend lines?

    Start with a prominent high or low on a higher time frame such as the daily. From there, look to see if you can connect a trend line with the subsequent lows (for an uptrend) or highs (for a downtrend).

    Is it okay if a trend line cuts through a candlestick?

    It’s okay if a trend line cuts through a small part of the upper or lower wick on a candlestick. However, as a general rule, a trend line should not cut through the body of a candlestick.

    Now I've Got a Question For You...

    Are you ready to begin using these techniques in your trading?

    Then you definitely want to download the free Forex trend lines PDF that I just put together.

    It contains the four keys to drawing these levels accurately. I’ve also included examples so you can see exactly how I use trend lines in my trading.

    Click the link below and enter your email to download the cheat sheet.

    Trend lines optin

    Leave a Comment:

    105 comments
    hiep says

    thank you @@@@@@@@@

    Reply
      Justin Bennett says

      You’re very welcome.

      Justin

      Reply
        Andrew Thorne says

        Thank you very much. I am new at this and losing money constantly, even as we speak. Hope this helps.

        Reply
    asim kazmi says

    sir ,it is great column….
    thank you

    Reply
    Sifiso Nkosi says

    Thank you for this lesson I have been using trendlie/support/resistance without much understanding this is the best explanation by far. Thank you

    Reply
      Justin Bennett says

      That’s great to hear, Sifiso. Trend lines can be incredibly powerful when you know what to look for.

      Let me know if you have any questions.

      Reply
        Lazarus says

        Thanks for confirming that to us , now I know where to spot and either buy or place a sell but what is the target ratio.PLZ elaborate

        Reply
        Tatenda says

        Thank you.What time frame do i need to start drawing trendlines as an intraday trader?

        Reply
    esam says

    very clear and contains some good points worth noticing .Thank you keep it up

    Reply
      Justin Bennett says

      Glad to hear it, Esam. Thanks for stopping by.

      Reply
    Peter says

    Thanks for this insightful article I have always seen horizontal levels coincide with trend line leaving me confused what a coincidence …it’s not until today have learnt trend line is diagonal representation of horizontal levels.
    Thanks again .

    Reply
      Justin Bennett says

      You’re welcome, Peter. Although, diagonal levels and horizontal levels are separate things. They do sometimes coincide, but each should stand on its own.

      Reply
    JimR says

    thank you so much for selflessly sharing your knowledge. I am growing as a trader with the regular technical analysis you are sending.

    Reply
      Justin Bennett says

      Pleased to hear that, Jim. Feel free to reach out with any questions.

      Reply
    Mike says

    Great explanation Justin, struggled with trendlines myself in exactly the way you described ie forcing them to fit sometimes leading to poor trade entries etc, Thankyou for pointing this out.
    Mike

    Reply
      Justin Bennett says

      Mike, glad you found it helpful. Forcing levels to fit is one of the most common errors I see. If a level is worth keeping an eye on, it should fall into place with almost no effort.

      Reply
    Sammy says

    Thank you very much, sir!

    Reply
      Justin Bennett says

      You’re welcome, Sammy.

      Reply
    sohail says

    it was helpfull i have a question what is the best timeframe to draw the trend lines ?

    Reply
    Moeletsi Mathabathe says

    Hi Justine, thanks for the brilliant article. This is genius. I would like to know is it safe to just use trend lines and not horizontal likes.

    Reply
      Justin Bennett says

      Moeletsi, glad you enjoyed the post. It takes a lot of practice, but trend lines can be extremely helpful, particularly when determining the strength of a trend. This lesson will help with that: https://dailypriceaction.com/free-forex-trading-lessons/3-powerful-techniques-determine-trend-strength

      Reply
        warren says

        thanks alot for the clear article on trendlines fam.did you say you analyse using the bigger timeframes then you place trades in the smaller timeframes based on the information from big timeframes?

        Reply
          Justin Bennett says

          You’re welcome. No, I only use the daily time frame in most cases.

          Reply
    Monir hussain says

    Very clear concept and specific

    Reply
      Justin Bennett says

      Pleased to hear that, Monir. Thanks for the feedback.

      Reply
    Francesco says

    useful clear simple. Thank you

    Reply
      Justin Bennett says

      You’re welcome.

      Reply
    adesoji says

    very educative.thank u sir

    Reply
    sudharshan says

    Good article. Keep posting ……………. Thanks 🙂

    Reply
      Justin Bennett says

      Thanks, Sudharshan. Will do.

      Reply
    Dipak Modi says

    Knowledgeable & self explanatory.

    Reply
    Goitse says

    Great article. On point. Tx always a pleasure reading your blog.

    Reply
      Justin Bennett says

      Thanks. Pleased to hear that.

      Reply
    Agga says

    Some of trend line broken are false because the price go up or down just a few candles.
    How can we know the brake out is true or false?

    Reply
      Justin Bennett says

      The best way, in my opinion, is to wait for confirming price action such as a pin bar.

      Reply
    RichardG says

    Nice read justin. Very clear and will give more edge on traders if done correctly. Thanks for the share..richard

    Reply
      Justin Bennett says

      You’re welcome, Richard.

      Reply
    Moeletsi says

    Thanks again Justin, I’d also like to know if is it okey to draw these trend lines on the 4 hourly chart.

    Reply
      Justin Bennett says

      You can if it makes sense to do so.

      Reply
    Jaron Lines says

    Fantastic article! With your great understanding of the market you could be building a huge following with passive residual income through iMarketsLive.

    Reply
      Justin Bennett says

      Glad you enjoyed it.

      Reply
    Dan says

    I have been trading this way on D1 and W1 graphs so far its been profitable but there is so few trading opertunities can i drop down to 4hour graphs or is that a bad idea ?

    Reply
    Mrs M says

    I’m trading binary and I’m using short time frame ,1 min chart …I will try to use longer chart as well thank u Justin

    Reply
    Eddie says

    Thanks Justin for the informative post. So clear and precise.

    Reply
    Ignis Cattus says

    well, now I know what should I do 😀
    thanks mate

    Reply
    Q says

    This was so helpful. How often do these breakouts occur in the market across all major pairs?

    Reply
    Craig says

    Hello Justin, you say one needs to practice, are you actually telling me that with practice you can actually get better at drawing trendlines up?

    Reply
    Roy Peters says

    Excellent article. After trading for only 3 months. Things are starting to sink in now. I have a clean chart with no indicators.

    Reply
    Olalekan says

    Nice information on trend line usefulness

    Reply
    Lawal Babatunde says

    It was insightful.

    Reply
    Teresa says

    I got the answer I was looking for. Thank you.

    Reply
    mlungelwa ncwane says

    excellent

    Reply
    Ahmad Baron says

    i am rich now.. good job draw trendline thank you sir

    Reply
    fatokun babatunde says

    Nice write up.

    Reply
    John says

    Wow what agreat strategy bro.

    Reply
    Herbert says

    thank you sir

    Reply
    Oscar says

    Thank you Justin.

    Reply
    Ntsako says

    Thank you for this trendline lesson, very well written and illustrated, cleared my confusions.

    Reply
    Arhan Arya says

    Clearly explained.
    Thank you Justin.

    🍀💚🍀

    Reply
    Np says

    +

    Reply
    Diksha says

    Justin thank you for this information; I have a question: having a small pot, I like to trade intra-day. Should I plot my trendline(s) on a higher time frame e.g. hourly/4 hourly/daily and trade to these on the smaller time frames or should I draw them on the smaller ones and trade to these?
    Comments welcome.

    Reply
    jennifer says

    The write-up was really helpful.Tnk

    Reply
    Neo says

    Thanks for the information

    Reply
    Neo says

    Thank you

    Reply
    thandeka says

    thank you so much for the information, am still new and trying to learn how to master trading and using tools properly. I learnt a lot today

    Reply
    Antohi Dan says

    thank you for your lesson

    Reply
    antonio says

    Ciao Justin,
    grazie ora mi è molto piu chiaro come interpretare la tendenza
    Grazie!!!! Il mio scopo di fare il trader sta per essere riabilitato!!!
    Un abbraccio

    Reply
    Habib Khalid says

    Thank you very much..
    this is very helpful..

    Reply
    Morrthy Chelliah says

    Great info for a beginner. Tq.

    Reply
    Jauhar Mahadkar says

    It is a excellent idea has been given to those who are very new in trading, trading is not so easy to do anytime we have to keep patience for that moment which we are eagerly waiting for buy or sell as per trend lines given opportunity, specially the pin bar. Thanks a lot Brother Justin Benette.

    Reply
    Govan says

    now i know how to draw trendline thank you sir.

    Reply
    Rodg says

    Thank you Justin. I found it very useful and this gave me a better understanding how to draw the trendlines and horizontal lines.

    Reply
    Henry Chijiago says

    Hmmm!!! I love this. Your article on trend line helped me a lot on the chanages I encountered when drawing and identity trend line.
    God bless…

    Reply
    Olasoji Ayeni says

    This lesson is great, precise and straight to the point with so simple English that really enhance assimilation and understanding.
    I’ve never understood trend line technique as much as I do now after read your wonderful lesson.
    Please keep it up sir.

    Reply
    Elesco Mponzi says

    Thank you sir very valuable information to me about drawing trend lines!

    Reply
    desiree king says

    Was very helpful, Thank You

    Reply
    Davie Ngush says

    Justin you the genius, you always point out something i can never think of.

    Reply
    Dave says

    THANK YOU

    Reply
    ik says

    im wondering why if i do trendline on the daily chart ,let’s say downtrend ,the wick or body did not touch the trendline yet,but when i see on weekly,its already touched,which one is correct to see ?thanks in advance master 🙂

    Reply
    Nathi says

    Thank you for the lesson sir now i understand how to use trend line.

    Reply
    TOBIKO says

    GREAT TEACHING.THANK YOU

    Reply
    you mom says

    can you rub my pussy?

    Reply
    Steven Ijumba says

    Yap good

    Reply
    Mariano says

    It’s really helpful, thank you much appreciated!

    Reply
    kerlinah says

    thank you very much, now I know and understand how to spot and draw trend lines

    Reply
    Ntebaleng says

    very nice and easy I now start to make profit after this lesson thank u very much

    Reply
      Justin Bennett says

      You’re welcome. Always glad to help.

      Reply
    ehsan says

    tnx alot

    Reply
      Justin Bennett says

      You’re welcome.

      Reply
    Doxxad says

    Now I get it. This is very helpful. started practicing right away. thanks

    Reply
      Justin Bennett says

      It’s my pleasure. Let me know if you have questions.

      Reply
    Ola says

    Hi =)

    If you go to the picture the “first point” and the “secound point” i have some difficulty to see how many points
    a trendline has in my charts. in your picture for me it can be three points as we have three bars that touch the
    trendline. so it needs space between the points to be a point? what do you say to use zigzag in
    the chart as the standard settings to locate the points? thanks

    Reply
    Junior says

    Wow this is soo clear..thank you

    Reply
    Patrick says

    Yep excellent clear article. Trends never as straightforward as portrayed but this piece really highlights that and strategies to draw accurate trendlines on your charts.

    Reply
      Justin Bennett says

      Thanks for the feedback, Patrick. Glad you enjoyed it.

      Reply
    phelo says

    thanks very helpful…

    Reply
    great content says

    thanks

    Reply
    great content says

    thanks for sharing

    Reply
    FRANK MOFOKENG says

    I FEEL CONFIDENT AND READY TO TRADE AFTER I WENT THROUGH THIS LESSON

    Reply
      Justin Bennett says

      Thank you. Glad it helped.

      Reply
    Raphael says

    Amazing lesson.
    Thank you very much.
    Hoping to join your community soon.

    Reply
      Justin Bennett says

      You’re welcome, Raphael. Happy to help.

      I hope to see you on the membership site soon!

      Reply
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