Simple question about trend lines


I’ve got a question.

When drawing a trend line, it’s ok to not include fake outs?

For example, if I’m going to draw a trend line on EUR/USD, and in the middle of the trendline it was broken and then returned to the right place… Should I forget about that fake out, or should I include it in the trend?

I hope I was brief.



You should include any data points that existed. I personally draw through whatever the previous 2 or 3 swing points were. This type of thing is very subjective, so your just going to have to get experience doing it.

your personal preference should prevail.
i see people draw trendlines across fakeouts. others are purists and want to draw trendlines based on price extremes. still, others draw trendlines across prices.

Yes they should touch the “fakeouts”, highest highs and lowest lows.

Thanks very much for the answers.

I’m going to start drawing trendlines on the currency pairs and comparing with the trendlines drawn by more experienced forex traders.



When I think other traders will draw trendlines is the best place I draw them. Sometimes I draw from pinbar to pinbar and other times I skip pinbar.

Ask 5 experienced traders how to draw trendlines and you will get 100 different answers.

Demark’s TD Trendlines are the only objective way I have found to consistently draw them the same every time but they are definitely short term in nature (using only the last two fractals). As such, I feel they are of limited value but they are, if nothing else, objective and consistent. You will draw them the same way, using the same criteria every time.

Why can’t the traders decide where to draw the trendlines? It makes this confusing…

It’s good to think that, I put them when “fits” the market. (Yes, I know that it’s the market that has to fit the trend line).

PS: Sorry for my lack of response, but I’m having major problems with my ISP.



they can, it’s just subjective… like the way we all want different cars, or jeans, or women/men

I think it’s a good answer :smiley:



of course it is. I used the magic word, didn’t I? :smiley: makes it easier to understand :smiley: