Free Trading School · Level 9: Key Levels and Multiple Timeframes
Trendlines and channels
A trendline connects two or more swing lows in an uptrend (or swing highs in a downtrend). It gives a visual boundary for pullbacks. Draw a parallel line through the opposite swings and you have a channel.
A rising channel: pullbacks find buyers near the lower line, rallies stall near the upper line.
- Use at least two touches to draw it and a third to trust it.
- Draw through candle bodies or wicks consistently; do not force the line.
- Steep trendlines break sooner; very steep moves rarely last.
- A break of the trendline warns that the trend is weakening, but the trend itself only ends on a lower low.
Trendlines are guides, not walls. Combine them with horizontal levels for stronger zones.
Quick answers
A trendline connects two or more swing lows in an uptrend (or swing highs in a downtrend). It gives a visual boundary for pullbacks. Draw a parallel line through the opposite swings and you have a channel.
Trendlines are guides, not walls. Combine them with horizontal levels for stronger zones.
Three. Two touches draw it; a third confirms others are respecting it.
Next lesson: Fibonacci retracements and extensions