Trend lines are fundamental skills that anyone engaged in technical trading must master. Today, let's break down how to draw effective trend lines.

**What is the essence of a trend line?** Simply put, it is tracking the trajectory of market highs and lows. In an uptrend, each low is higher than the previous low, and each high is also moving upward, which is called "higher highs and higher lows." Conversely, in a downtrend, both highs and lows are decreasing sequentially.

**You need to connect at least three points for it to be valid.** Connecting only two points? That might just be coincidence. But when the price touches a line at least three times and encounters resistance or support each time, that line becomes a true support or resistance zone. The more points connected, the stronger the market consensus—trend lines with five points are definitely more credible than those with three, reflecting the underlying market forces.

**The cycle should be sufficiently long.** A trend line should span at least 3 weeks of candlesticks; ideally, more than 7 weeks. Longer cycles make the line more resistant to noise and more reliable.

**The slope shouldn't be too steep.** Trend lines should maintain a relatively gentle angle; if too steep, it’s problematic. A gentle line, once broken, offers a higher chance of reversal. But if the line is too steep, it indicates strong supply and demand; even if broken, it might just lead to sideways consolidation.

**How to use it in practice?** First, find a reliable line—at least three contact points, spanning over 3 weeks, with a gentle slope. When the price breaks above a descending trend line with high volume, that’s a buy signal, with a stop-loss set below the previous candlestick. After an upward trend begins, use the 20-day moving average as a short-term trend reference. As long as the closing price remains above this line, hold your position; once it closes below, exit immediately.