This is why I like diagonal trend lines. I know some of you think they’re useless, and maybe they are because really they’re just following price from point A to point B (support/resistance, swing high/low). BUT, I find it fascinating how price tends to consistently gravitate back to a certain area on a quiet week. Here’s a good example of the AUDCAD 1H:
This is an interesting way of looking at it. I’ve only looked at trend lines to form channels mostly or just the regular s&r. Will try and incorporate this more. How do you use this in your trading?
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I use diagonal trendlines in almost all trades taken off the H4 time frame.
The best set ups are found when you can find what I refer to as ZOC ( zone of confluence between the diagonal support or resistance and an established horizontal support or resistance…A key level is a prize zone that has been tested multiple times as support and resistance
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What makes me so amused when lots of people draw their “trend lines” is they draw them as a line of best fit and they don’t care if it cuts thru parts of candles. Each person drawing lines like that are looking at their own unique “support or resistance” and no one else would be buying or selling with them. The whole idea is to move with the market. To do that you must draw accurate trend lines. Then chances are many other people will also be looking at the same thing. Including big professional traders.
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I only use diagonal trend lines if there’s a clear channel formed. When price is moving from a support area to a resistance area (or vice versa) on higher time frames it often forms a channel on the lower ones. I use these channels to find a decent entry point.
The chart I posted was just an observation.
Nice. Will try this out. Thanks for sharing! 