Simple question about trend lines

Beginner Questions
1

Hello,

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.

Regards,

MiguLuso

2

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.

3

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.

4

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

5

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.

Regards,

MiguLuso

6

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.

7

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.

8

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.

Regards,

MiguLuso

9

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

10

I think it’s a good answer :smiley:

Regards,

MiguLuso

11

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