 All right guys, we are going to talk about trend lines. Okay, what is a trend line? Let's write this down. This is my home office, don't mind. This is actually my wall. Okay, so What is a trend line? Okay? Can the straw some candlesticks here? Well, I'm trying to just Take a guess. What do you think the trend line is and how is it useful? What can we do with the trend line? What does it mean for you? Okay a Trend line when you have a series of candles going up. Is this a trend line? When you connect the lows Technically, yes, it is but That's not the way to draw your trend lines. Let me explain why Okay Because this gives you an immediate trend. It tells you where the market is currently going But if you just look at where the market is currently going, you don't need to draw a trend line You can obviously see where it's going, right? But when the market goes like this And it starts coming down Let's say we have one like that Then it starts to go back up. Okay. So now if you look at this, it's a big mess, right? But when you connect your dips Which is this point here and this lowest point here And you connect them you see which way your trend is going. This is called a trend line if you were to draw this with that candlesticks and just a row This is what your chart looks like just on a line graph and if you connect your lows You can always see which way Your trend is going same happens with if you're doing it the other way around if you have a market going from up to down You can connect your tops As a tip to tip, you know, I'm sorry. Let's connect a little bit nicer From tip to tip gives you a better idea which way the market is going Now there are various techniques and strategies you can do with trend lines And I think I think below the video in the information will give you some strategies that are with trend line A very famous one is a trend line. Uh trend line breakout strategy Okay, if you combine this with one or two indicators such as cci or Stochastics You can use a nice trend line breakout strategy with it. Um, if you are on the one hour timeframe, okay so Hope this makes sense on how a trend line works. Um, let me show you a nice example for a downtrend Okay, you have your nice candles Markets going down Okay, and then finally it starts to turn around and then it goes continues down again Okay, this is a downtrend example. You connect your tops from here to there Gives you an idea which way the market is going now This can be done on a one hour time frame on a 15 minute time frame during their time from any time frame that you want Gives you an idea which way the market is going. This is for an uptrend. This is for your downtrend So trend lines, what do you need to usually connect? Do you connect? On a running market? No, do you want to only connect? Once your candles are closed And once you have dips or peaks Okay, now when you have something like this You want to connect only your tops or you want to connect only your bottoms Okay, does that make sense? Okay, and there should be a gap in between usually There's always a gap in between a free space. That's when you can connect trend lines And that's how you know which way the market is going. Okay, so let me explain to see how it looks on your screen Okay, so we're looking at the screen right now for example We're looking at euro usd on the one hour time frame. Let's take it down to the 15 minute time frame So it can get you a better idea Okay, this is today's market Okay, and this is yesterday's market now Let's see here now remember what I said that you need to look for dips or peaks or peaks and valleys as they call it You can see how if we connect our lows our tip here And our tips there and there's that empty space in between like I was talking about this gives you a trend line You can see that the market did respect this trend line again in the future We can do the same thing for the top side, you know, we can connect our our tops And you can see that this top connected with this top was respected again in the near future And this is that big open space. There's some open space here So this can be done several ways. So during doing this you can find that that this is a nice downtrend and Once the market breaks through for example right here once it broke through it started going north So this gives you a sense of direction of overall even though you're long over here You can get an idea where the market might end up stopping Okay, if you are in a bi-position, I'm sorry um So let's take a look at a a trend line that is going long. Let's take a look here I'm connecting our lows to this low nice open space here I connected this low to this low and it was respected again over here And we will uh connect our tops also if you like from this peak to this peak And you can see this nice open space in between as well so Even though this with this we know the market is trending upwards in this particular time time frame And when the market was actually going down We know that where the market might halt or if it's going to continue up from here But it broke through which means the market then changed directions. So This holds valid all the time. Uh, you can draw trend lines everywhere and anywhere Any currency pair any time frame? And it holds true again and again and again, okay Oh Another thing trend lines can act as something called support and resistance once the trend line is broken for example This right here used to be resistant so the market used to bounce from it as resistance Once it breaks through it becomes support as you can see the market came back down And uses as support it bounced off of this to go north now instead of south Okay, so once it breaks through it becomes the opposite of what it was usually doing All right, so I hope that makes sense to you guys now. Let's get back. Okay. Welcome back So hope that made sense to you guys we learned a little bit about trend lines today And we have other tutorials explaining about various other things such as the binoculars and pivot points and stuff like that Um, hope you guys are a member at urban4x.com and we have a live trading room there And which I'm there also on a daily basis and I'd love to see you guys there. So thanks for watching till next time