Trend line trades

When you spot a strong trend line do you…

a. open a trade when price touches the line or
b. wait for candle confirmation?


candle formations can turn into nothing in no time at all. wait for the candle.

You can trade it either way IMO.

If you place the trade when it gets close to the line, you will have a lower win rate but a better risk:reward ratio.

If you wait for the candle to close to confirm, your win rate will be higher, but your risk:reward rate will be worse since your entry price will likely be worse.

Personally, I prefer the first option. I’m not worried about being right all the time, what I’m worried about is that I make more money on my winning trades than I lose on my losing trades. If I set my limit three times as far as my stop, all I have to do is win more than 25% of the time to be trading with an edge.

You need put in the trend line earlier whenever you find a higher high or a lower low. This is used to predict the next high or low. So draw in the trend line early