Trend & Trendlines: Trading With The Path Of Least Resistance
Identify the trend, draw trendlines correctly, and understand why the trend is your friend — until structure says otherwise.
What A Trend Really Is
An uptrend is a series of higher highs and higher lows. A downtrend is lower highs and lower lows. Anything else is a range.
Trend is not a feeling — it is structure. If the last swing high and low moved up, you are in an uptrend, full stop.
How To Draw Trendlines
A trendline connects swing points, not every candle:
- Connect at least two clean swing lows (in an uptrend) or swing highs (in a downtrend).
- The third touch confirms the line.
- Wicks vs bodies — pick one and stay consistent.
Channels & Parallels
Draw a parallel line across the opposite swings and you get a channel. Price often oscillates between the two lines.
Channels help you buy near the lower line and sell near the upper one — with the trend, not against it.
Breaks And Retests
When a trendline breaks with momentum, it often signals a trend change or a pause. A breakout followed by a retest of the broken line is one of the cleanest entries.
But a single break is not proof. Watch structure: has a swing low actually been taken out?
Trend vs Range
Most markets spend more time ranging than trending. In a range, trendline strategies bleed — you get chopped up on both sides.
✅ Key Takeaways
- Trend = structure of highs and lows.
- Connect swing points; the third touch confirms.
- Channels frame with-trend entries.
- Respect the difference between trending and ranging markets.
⚠️ Common Mistakes
- Forcing trendlines that do not fit.
- Trading trend strategies in a range.
- Calling a reversal on one trendline break.
🧠 Quick Quiz
Lock in the lesson — answer, then check your score.
Keep The Momentum.
Finish the track, take the quizzes, and come back to these notes before your next session.