In this lecture
- What swing highs and swing lows are
- Important rules to draw trendlines
- A simple method to draw trendlines
- Which points to use and which to ignore
We start with swings, then the important rules and a simple method to draw trendlines, in Urdu and Hindi.
From the lecture
Read what the chart is doing now, on several timeframes, before any indicator or signal.
How Dr. Qazi teaches
Lesson notes
Start with swings
A swing high is a peak with lower highs on both sides. A swing low is a trough with higher lows on both sides. Trendlines are drawn through these turning points, not through every small wick.
In an uptrend price makes higher highs and higher lows. In a downtrend it makes lower highs and lower lows. Read the swings first; the trendline only shows what the swings already tell you.
Rules for a reliable trendline
- Uptrend: connect swing lows. Downtrend: connect swing highs.
- Two points draw the line; a third touch confirms it.
- Do not force the line through candle bodies to make it fit. If it does not fit naturally, it is not a valid trendline.
- Draw on a higher timeframe first, then use it on lower timeframes.
- Very steep lines break quickly. Gentle slopes hold longer.
- Redraw when the market makes a new important swing.
A trendline break is not a reversal by itself
When price closes beyond a trendline, the trend may be slowing, not ending. Wait for structure to change (a lower high in an uptrend, a higher low in a downtrend) or for a retest of the broken line before you trade against the old trend.
Khulasa (Roman Urdu / Hindi)
- Trendline sirf swing points par lagti hai, har wick par nahi.
- Uptrend mein swing lows, downtrend mein swing highs jorein.
- 2 points line banate hain, teesra touch usay confirm karta hai.
- Trendline tootna khud reversal nahi; structure badalne ka intezar karein.
Questions
How many touches make a valid trendline?
Two swing points draw it and a third touch confirms it. The more clean touches, the more traders watch it.
Does a trendline break mean the trend has reversed?
Not by itself. Wait for a change in market structure or a retest of the broken line before trading the other way.
Should trendlines touch wicks or bodies?
Most traders use wicks; some use bodies. Choose one way and use it consistently.
What is a trendline breakout?
A candle closing beyond the trendline; it shows the trend may be slowing, not automatically reversing.
Can trendlines be used for scalping?
Yes, on M5–M15, but trendlines from H1 and H4 are more reliable.
What is the difference between a trendline and a channel?
A channel adds a parallel line on the opposite swings, giving a lower and an upper boundary.
Related lessons
Support and Resistance: how to draw it, and why it failsPrice Action Basics
How to identify and avoid false breakoutsMarket Analysis
Rule-based multi-timeframe analysis (top-down)Education only, not financial advice. Trading forex, Gold and CFDs carries a high risk of loss. Examples are for learning; test any method on a demo or in a simulator before using real money.
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