Kardec Trader explains a simple "three plus" trend-line trading strategy: require three or more touch points on a trend line, at least a week's worth of data, and low-risk setups. The speaker describes using alerts, waiting for a confirmed break, and creating an "action line" and a separate "safety line" (adjusting the trend line visually to a lower point) to control entry risk.
So we're going to do the three plus trend line. 3. Our entry criteria for this one is first it has to have three or more touch points, has to have over a week's worth of data. And then the last one is it has to be low risk. I'm making sure my alert is set and all I need is two touch points to draw a trend line. So I've got one and two touch points. So by this time I would have known. Okay, I've got a second touch point. My alert is set. If Price breaks it, I'm going to enter. It finally breaks right here. Now my alert will go off here, my alert will go off here. And my alert will go off here. Watching this in real time, the body of the candle is moving down. This looks like this might be a setup for me. So this is where I have to be patient. So now my alert went off. Price broke. But we were working with all time high. I don't have anything keeping me safe. So this one doesn't have a safety line. And if I was to enter, it's incredibly high risk because it had to come all the way back up here. So I don't have a point A and point B. At what point do I enter? This is where I will take this line and I will adjust it. So I'm going to do a dotted line and kind of visually pretend like I'm taking this line and moving it to this new low. So now we have a break. I've got an action line and a safety line. Now I can actually get involved.
