Trend Lines and How to Take Advantage of Them

Oh my goodness! I've been analyzing charts for weeks and finally understood how to use these blessed trend lines. I'm going to share what I learned because it has saved me from several financial disasters.

What are these lines really?

Trend lines are not magic, although they may sometimes seem so. They are simply lines that connect specific points on a chart to show where the price is moving. I constantly use them to know whether I should buy or sell.

• Bullish Lines: Connect increasingly higher lows (I love these!)
• Bearish lines: Connect increasingly lower highs (these give me chills)

The number of traders who ignore these lines is absurd. While they act smart with complicated indicators, I win trades simply by respecting these basic lines.

How do I draw my lines ( without complicating myself )

Drawing these lines is not rocket science, but it has to be done well:

For bullish lines, I look for those low points where the price bounces and connect them. The line must slope upward. If BTC bounces three times on the same line, I jump in to buy without thinking too much.

For bearish lines, one marks the high peaks where the price can no longer continue rising. If I see that ETH hits that line and drops, I sell quickly before most people realize.

I don't understand why some people complicate things so much. I learned this after losing quite a bit of money trying more sophisticated methods that only confused me.

How do I use them to win ( and not lose like before )

These lines have saved me from several mistakes:

To buy: When the price hits an upward line, I buy. Simple. It has worked for me 70% of the time. The other 30%... well, nobody's perfect.

To sell: If I see it breaking a bullish line that it has respected for months, I sell immediately. I don't wait for confirmations or nonsense like that. Many platforms encourage you to hold, but I prefer to secure profits.

Recently, with BTC, I identified a clear upward trend line. I bought every time it touched the line and sold some when it went up 5-7%. Nothing spectacular, but consistent. When it finally broke the line, I sold everything, while others kept waiting for a "bounce" that never came.

Short-term vs. long-term lines

Trend lines work on any time frame, but I've noticed that long-term ones are more reliable. Short-term ones have misled me many times.

The lines on daily charts seem more reliable to me than those on 15-minute charts, where any random news can break the trend. I learned this the hard way after trading only with minute charts during my first few months.

Avoiding mistakes that cost me money

I have made all these mistakes ( and I continue to make some ):

• Force lines where there are none: I was trying to see trends where none existed. Pure fantasy.
• Trust only in the lines: I have done poorly by ignoring important news that would obviously affect the price.
• Drawing lines after they break: This is cheating and we all do it. Adjusting lines after they break to make it look like it's "still in trend" is lying to oneself.

The crypto market does not always respect technical analysis. I have seen perfect lines break due to a simple tweet or an unexpected regulatory news.

A real example ( that hurt me )

I was following ETH with a nice upward trendline. Every time it touched the line, I bought more. It worked about 4 times and I felt like a genius. But on the fifth time, ETH brutally broke through the line. I refused to accept it, thinking it was a "fake breakout." I waited for the bounce that never came and ended up selling with a 15% loss.

The lesson was clear: when a line breaks with volume, it must be respected. There are no second chances or "exceptions".

Trend lines are powerful but fallible tools. They have helped me make better decisions, but I have also learned that the market always has the final word. There is no foolproof technique, no matter how much some "gurus" want to sell you their miracle courses.