How do you draw Trend lines the correct way

Beginner Questions
1

According to babypips school of pipsology what you have to do is find 2 major tops or 2 major bottoms, also knows as swing high and swing lows i think?

But it isn’t really that easy.

If i use 3 timeframes, like 1 month, 1 week, 1 day.
The question is, how many candles i should go back when drawing the trend line, and how long should i go back to find those peaks and bottoms. Do i take the most recent ones, that can be in a range of maybe 8 candles, or do i take the most clear and majors ones that can easily be more than 50 candles in range.

Because if i take the most recent ones, then the drawn trendline will be specific for that timeframe, but it’s most likely going to be broken because of the steep or because of the amount of candles.

If i take the most clear and majors ones, then it won’t be that specific for that timeframe, it might be more reliable, but the clear uptrend on a weekly chart, might actually be a clear uptrend on a monthly chart, because i used so many candles in the drawing of the trend in that weekly chart.

So how does one correctly draw a trend line and how many candles should one go back, the recent peaks and valleys or the most clear and majors ones.

2

This here is the reason why started using Moving Averages as trend lines. Just whip up a single 30- or 50-EMA if on a daily or hourly chart and it will serve as a support when the candles are above the trend line and as a resistance when the candles are beneath it. If the candles drift away too much from the MA, keep in mind that they will still retrace back to it. This is the principle on which the Bollinger bands are created.

3

Depends on what you want to do with the trend line.
If you are watching long (time wise) charts, looking for major areas for a long term trade, then marking the major points would, no doubt, be a thing to do.
If you are also trading the short bounces off trend lines and maybe the break of those trend lines, then, of course, the shorter, just recent trend lines would have to be marked, too. :slight_smile:

4

For drawing correct trend line, we have to identify good levels of market so keenly! If trend line touched by 2 level perfectly then we can expect 3rd level would be perfect as like previous 2 one! Trend line helps us to define the nature of market trend!