Trendline Trading Strategies and Key Things to consider for Intraday Trading

Trendline Trading Strategy is the simplest trading method. In this article discuss about types of trendline trading strategies and what things to be consider while both trendline trading.

There are two types of trendline

1. Long tern Trendline  -  Long term stock moving trends. Ie Impulsive
2. Short term Trendline -  Short trendline within a long term trendline


There are 2 types of trendline trading strategies

  1. Trendline Breaking
  2. Trendline Pullback


Trendline Breaking Trading Strategies

  • Trendline Breaking actually means long tern trend line breaking.
  • At least 15 Min 5 Day Chart is best for this trading strategies
  • Higher High Lower Low concept valid in long term trend line breaking strategy
  • Trading Opportunity only after breaking of Last Lower High in Downtrend, higher Low in Uptrend.IE. Last Lower High (in downtrend) and is the Momentum Change Point.


Trendline Pullback Trading Strategies

  • Trendline pullback means pull back from a long term trendline (Short term Trendline Breaking)
  • Higher High Lower Low concept is not much important. Because most of the time it will not be generated. that's why Last Lower High (in downtrend) and Higher Low (in uptrend) need not break.
  • At least 5 Min 5 Day Chart is best for this trading strategies.
  • Most of the time "V" shape recovery / Pullback is possible

Things to Remember

  • Always remember that Trendline breaking will not change the momentum from downside to upside and vice versa. Last Lower High(in Downtrend) is the key point to change the price trend or momentum from down to up. Trendline break only lead to sideways price move in most of the time. In simple, Trendline breaks leads to sideways price action Last Lower High (in Downtrend) Breaks leads to trend change
  • Trading Opportunity emerge only after Momentum or trend change. Ie From Down to Upmove, trading Opportunity emerges only after Last Lower High 

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