Two rules for drawing trend lines that actually hold
Most trend lines traders draw on Bitcoin charts are imaginary, and trading their breaks is a fast way to lose money.
- A trend line is only valid if it connects real turning points — highs with lower highs on both sides, or lows with higher lows on both sides.
- Two touches is just a guess; three touches makes it a real trend, unless both touches came on unusually heavy volume.
- Heavy-volume anchors are the strongest ones and can get respected months or even years later, so extending those lines forward gives free levels to watch.
- A steep, near-vertical line signals a short-lived trend — assets that go straight up tend to come straight back down.
- A break is not failure, it is information: the old support usually flips into resistance and gets sold.
Outlook: Horizontal levels matter more than diagonal lines, and a trend reversal is only confirmed when price closes past the last major swing point.