Kardec Trader explains two trendline trading setups: breaking through a trendline and bouncing off one. The video covers how to place buy orders and manage trades using these patterns.
I'm able to make the most amount of money on this specific setup, but I'm going to go over two types of setups with you. So one is going to be a trendline break, and the second one is going to be a trendline bounce. I utilize this one the most, but when I started, I used both. So the bounce is going to be looking for places to buy when price gets to a trend line. So if you've got a touch point and a touch point, this one you wouldn't have been able to capitalize on because it just created the same touch points. But this one and this one you would have been able to create a buy order here and a buy order here, and then this would have bumped you out. I've given these trend lines names, so we'll always have an action line. So we've got action and safety. This one tells me when to place a trade, and this one tells me how I'm going to manage my risk and when I'm going to exit. So when we're trading the bounce, the line is the same. So this tells me when to get into my trade and it tells me when to get out the same line. So this is a great place to start. If you're trading the bounce, you're just trying to find as many touch points as possible. And then every time price gets to or close enough to the trend line, you're thinking it's going to respect it and you get into that trade. So buy order, buy order. And then. And this is where now I would close that position.
