| Trendlines are one of the most basic tools used in | | | | confirmation, you can trade with confidence when |
| trading. A trendline indicated that price action is either | | | | you use the combination of bullish trendlines with |
| going up steadily or down steadily. When the | | | | bullish candlestick trending patterns. This combination |
| trendline has a positive slope, it means that the price | | | | can tell you when to stick with an existing position |
| action is going up. This is also known as an Uptrend. | | | | and when to initiate a new position. |
| When a trendline has got a negative slope, this | | | | There are many candlestick patterns. Some are |
| means that the price action is going down and the | | | | simple and some are complex. You can use two stick |
| market is in a downtrend! | | | | and three stick candlestick patterns to confirm |
| Now, you can draw the trendline yourself. However, | | | | whether a trend is continuing or reversing itself. |
| most of the trading software can draw the trendlines | | | | These candlestick patterns not only tell you whether |
| for you automatically so you don't need to do much. | | | | the trend is continuing or reversing itself but they can |
| Drawing trendlines is always a subjective matter. It | | | | also tell you the best time for the entry and the exit. |
| looks obvious but sometimes, you can question the | | | | Correct entry and exit is what makes a winning |
| placement of the trendline. But don't worry too much | | | | trade. You do it wrongly and you will end up with a |
| about it when you use this method. | | | | losing trade. So it is essential that you should use |
| In the last two decades, candlestick charts have | | | | these candlestick patterns with these trendlines in |
| become highly popular with traders. There are many | | | | making the entry and exit decisions. |
| candlestick patterns that can be used to signal a | | | | How to exit with a trendline? Trendlines keep |
| trend reversal or a trend continuation. If you combine | | | | changing everyday! The first way to go about it is to |
| the candlestick trend continuation patterns with a | | | | draw a support trendline daily and place an |
| trendline in your trading,you can make highly | | | | appropriate stop loss that is good for that trade. This |
| profitable trades. The most basic question that any | | | | is a good stop loss exit strategy as the trendlines |
| trader asks before entering a trend is whether it is | | | | move with the trend, your stop loss exit also moves |
| going to continue. With these candlestick trend | | | | daily. The second method is to exit if the closing |
| continuation patterns, you can safely know whether | | | | price is lower than the trendline. However, the first |
| the trend is continuing or not! | | | | method is far more superior. |
| Because trendlines are so useful for trend | | | | |