trend lines & channels

Question 1

how do you draw trend lines?

Answer 1

you locate two major tops or bottoms and draw a trend line (under for uptrend, and above for downtrends)

Question 2

how many tops or bottoms does it take to confirm a trend line?

Answer 2

3

Question 3

the steeper a trend line is, the (more/less) likely it is to break

Answer 3

more

Question 4

like horizontal support and resistance levels, trend lines become (stronger/weaker) when he more times they are tested

Answer 4

stronger

Question 5

what is the major mistake people make when drawing trend lines?

Answer 5

drawing them to fit the market (forced)

Question 6

how do you draw an ascending trend channel?

Answer 6

simply draw a parallel line at the same angle as an uptrend line and then move that line to a position where it touches the most recent peak. this should be done at the same time you create the trend line

Question 7

generally, the (bottom/top) of a trend channel is considered a “buy zone,” while the (bottom/top) of a channel is considered a “sell zone.”

Answer 7

bottom, top

Question 8

when does a trend channel become a triangle and is no longer a correct trade channel?

Answer 8

a channel boundary that is sloping at one angle while the corresponding channel boundary is sloping at a different angle