Vladimir RibakovOwner, Chief Trader at Home Trader Club (Former Traders Academy Club), Owner, Chief Trader at Home Trader Club (Former Traders Academy Club) · Owner, Chief Trader at Home Trader Club (Former Traders Academy Club)

How to Find And Trade Bullish Trendlines

5 Jul 2024 · 1 min

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In this tutorial Vladimir Ribakov explains how to identify and trade bullish trendlines. He defines a bullish trend as a series of higher highs and higher lows, and describes that a trendline is drawn by connecting at least two price points, with three points needed to validate it. A valid bullish trendline must link at least three higher lows, acting as dynamic support: each bounce above the line suggests further upside. Ribakov notes that when price breaks below the trendline and stays below, it signals a potential trend reversal, often confirmed by a retest and rejection. He illustrates the concepts with two chart examples: the UK 100 index, where a classic bullish trendline is broken and the price moves down, and a CAD/CHF four‑hour chart showing a bullish trendline that is eventually broken to the downside, leading to a downtrend.

Chapters

How to find and identify a bullish trend line. Bullish trend line happens in bullish trend, meaning sequence of higher highs, higher lows. 2 spots are required to start and connect a line. 3 spots would validate a trend line. At least 3 higher lows would connect a valid trend line. Bullish trend line acts as a dynamic supportive line, meaning every time price bounces back and holds above the trend line, further rallies are possible. But at some point, the trend line would be broken and give a potential trend change signal. Here are a couple examples: the UK 100 index, classical bullish trend connecting at least three higher lows, and once the trend line is broken and holding below, we can see the retest and the rejection. The trend changes and pushes the price down. CAD franc four-hour charts, bullish trend line connecting the higher lows. And at some point the trendline is broken to the downside, holding below that, and changes the trend down.