The candlestick trading bible

60
THE CANDLESTICK TRADING BIBLE 
The market makes an impulsive move. If you understand how price 
action act in a trending market, you will predict with high accuracy 
when the next impulsive move will begin. 
Another way to catch the beginning of an impulsive move is by drawing 
trend lines.
This is another technical skill that you have to learn if you want to 
identify key linear support and resistance level. 
Let me explain you first what do trend lines mean? 
Quite often when the market is on the move making new swing highs 
and lows, price will tend to respect a linear level which is identified as 
a trend line.
Bullish markets will tend to create a linear support level, and bearish 
markets will form a linear resistance level. 
 
 
 
 
 
 
 
 
 
 
 
 
 

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61
THE CANDLESTICK TRADING BIBLE 
How to draw trend lines? 
To draw a quality trend line, you will need to find at least 2 minimum 
swing points, and simply connect them with each other. The levels 
must be clear, don’t try to force a trend line. 
Don’t use smaller time frame to draw trend lines, use always the 4H 
and the daily time frames to find obvious trend lines. 
We will try to focus right now on how to draw them in a trending 
markets, our purpose is to identify the beginning of impulsive moves 
in a trending market. 
In the next chapter, i will explain you in detail how to trade trend lines 
in combination with our price action trading setups. 
See an example of how to draw trend lines in a downtrend market. 
As you can see the market respects the trend line, and when price 
approach it, the market reverse and continue in the same direction.

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