Can Trendlines be used if they are "growing"?

When traders use trend-lines, they always seem to intersect at some point or run parallel to each other. Does it make sense to use trend-lines if they are growing apart from one another. The following four hour GBP/USD chart is my example, the trend-lines are drawn in green.

Thats still the basic trend channel drawn in there.

Trendline don’t always have to run parallel. The angles of the trendlines form chart patterns known as triangles or wedges… These patterns each predict a specific thing. Google “triangles and wedges” and you’ll find a lot of sites teaching you the specific patterns.

Here’s an example of one called an ascending wedge pattern. See how the trendline form a wedge shape? Since the wedge is pointing up it’s an “acsending wedge.” This predicts that price will break through the trendline and shoot down…

If you want to look this up on your chart note that it’s a pic from last summer… I’m recycling old pics from imageshack to save time. I have no clue how this turned out, it could have failed miserably but the logic of the pattern is still valid and works more than 50% of the time. :slight_smile:

Hmm, I see. Good tip, I’ll keep an eye out for triangles and wedges. I checked back, the PA shot up about 75 pips above the trendline but then dropped well below it, almost 300 pips. Interesting…