EP-10: Trendlines Explained for Beginners | How to Draw Trendlines in Trading

[00:06] what is support and resistance? And in today's video, we're going to cover what exactly trend lines are. And as I told you, line experts [sound of clearing throat] will tell you to cover up the trend line. Trend Line Expert will

[00:19] teach my brother exactly what [music] trend lines are? How does a trend line form? Which is a valid trend line? Which is an invalid trend line? ? So if you guys are excited then make sure you like this video, subscribe to the channel

[00:31] and yes, this video is going to be amazing. So watch this video till the introduce you myself. My name is Dinesh Gola and you know me a stock bundle. And which I'm teaching my younger brother how to trade, from

[00:44] [music] zero to a profitable trading journey. Now whether it will become profitable or not will be understands it properly. But I thought why not upload this series for you guys so that you can also learn trading with my brother free of

[00:56] cost. Ok? So let me introduce you guys our guest is Devansh who is a trend seen a video with him. It was amazing how many people showed love to it and thought why not call Devansh Bhai and teach him the trend line. Devansh

[01:11] Great, great, great. Brother, how are you Arjun Bhai? Excellent. So [music] Devansh bhai, a lot of people are going to see you here today. How do you teach my brother trading [music] ? How do you educate because I

[01:23] So I would like [music] brother, please play this video till the end and teach the trend line to my brother and also teach the trend line to the audience. A Trend lines will be taught well. So if you guys are excited and like this

[01:37] like this video [music] and subscribe to the channel and watch the entire video till the end. Come on guys, so Dinesh Bhai's channel has been hijacked here and you are We are meeting for the first time. Yes.

[01:52] Ok? But before I teach, I would like to ask you No. So but I have not traded. Learning things, selling things. So what have you

[02:07] learnt only as much as I can from the series that is going on. Meaning, you must have learned the support and resistance of the market. You must have learned how the market works. Have you learned any strategies So strategy guys, I will teach you next. Guys, whenever you

[02:19] learn any market, be it Indian market or crypto market, you first have to whenever you study, when you go to school, you first learn A B C D. Then after that we make words by combining A B C D. Then we make big sentences from the words.

[02:31] Ok? So here are the basics of the market. As if there were supports. Then the market works on the trend line. After the trend line you will Ok. So what do you know about some trend lines here

[02:44] heard of trend line? Have you ever heard of trend line? What is trend line? Meaning candle to candle line has to be joined. Meaning, if you draw a stick anywhere like this, a trend line will be formed. Ok? So what you

[02:57] it will become a trend line. But let me teach you in detail. To you and to the people watching behind the camera, should you trade on the trend line? Where should one not trade? Where should stop losses be

[03:13] placed? How do you identify where the trend is? I will teach you everything. Ok? So here we will first come to our board. Ok Ok? As far as I know, all you've learned is that this thing is a trend line. Yes.

[03:27] This thing is a trend line. Yes. But tell me when will you use this trend line and when will you use this trend line ? Are you getting any hints? Can't find it. So basically you have these two sticks in front of you. Ok? Whenever the market

[03:43] forms a bullish momentum. Ok? Then you will use this trend line which will help you in identifying bullish trades. Now I will tell you exactly how it will help you by taking you to the chart. Now what is there to say here?

[03:55] Market Let's suppose a market gained momentum in this manner. Ok? Okay, down, it will come down, then when it breaks out here then there will be momentum, now what do you understand as to how momentum will happen, is there exactly

[04:09] not understanding it, come on basically what happens is whenever the market goes up, the market goes up, let's suppose the market went up from here, okay, so will anything go up like this one way directly, no it will never

[04:24] learn by climbing one step at a time, yes, step by step, so the market also tell you once again what exactly happens. So the market

[04:40] created momentum from here. Ok? Now the market will come down slightly. Will take a pullback. Because think, if the market is rising one after the other, will any buyer enter? Will you enter? Meaning, let's suppose the market started forming from the level of 1000.

[04:53] Nonstop she is going to level 2000 without stopping. So will you make an entry? I will make it in the middle. Why would you make it in the middle? Will you find any logic in back to back green candles coming on this moving candle. Will you enter?

[05:07] You will find some logic that if you get big green candles back to back then you will never enter. Ok? Why? Because look at you, how can entry happen at any time ? Like on every pullback if the market is moving back to back. If anyone

[05:21] ? I see the candle is burning, it is burning , let's go inside. You should never enter such a place. You should always wait for the pullback. What does pullback mean? Don't know. A pullback is a point where people enter the market.

[05:37] Trend lines also work in the same way. The market moved on. A slight pullback was made. Ok? Here people will think about making an entry. This is the basic structure of the market. Because the market had run so high, it came back a little bit. So for those who had missed this rally, there will be an

[05:53] So for those who had missed this rally, there will be an will make their entry here. Then the market, this is the price action of the market. This is how the market grows. This will happen wherever there is a pullback in the market. Now I will

[06:07] teaching it here on the board so that people who are watching this video on YouTube can also understand exactly how things work. Ok? So all these pullbacks will become entry points. Ok? Ok? Now in this I will show you

[06:19] exactly how the trend line works. Ok? The market came running, got a pullback down. Ok? The market went up again, then came down again. Ok ? So these two dots will connect. Ok? Understand? The market will pull back here and

[06:34] down. I mean what is happening? There has been big buying in the market. Ok? There is a slight pullback downwards. Buyers are gathering now. And will create a support market at breaks the trend line again, you will get to see momentum. Do you

[06:49] ? No, no, I am not understanding. Ok? Let me tell you exactly what price market went up. Yes. Pullback. Got a pullback. Ok? From here you will start forming the trend line.

[07:04] From where the market will fall down. If you had a candle here, one candle would have made a week here. There would be a candle week here. There are two things in a candle. One body and one week. You have learned it. Ok? A wick is formed for the candle. You will connect it to this point.

[07:17] This is point number one. You connected it. Correct? Then the market is trend line. Because whenever you see, as soon as the candle comes down, your trend line will start forming. Ok? This is a bullish trend line. And

[07:31] now I will teach you how to catch bearish trades in the bearish trend line. First of all, Then the market came to another point to connect. Here you will see two candles touching the trend line. You said you would make a stick. We will make such lines. Ok?

[07:44] Where two candle lines connect twice, your trend line will be formed. Ok? A trend line formed in the market. Then, when the market creates support and breaks out for the third time, momentum is seen in the market. That's why the trend

[07:59] line moves. Trend Line: You have thought about how the market moves by pulling the stick. What is the reason behind that? We were buying in the market, there was a slight pullback, then the market went down, tried to breakout again, it did not happen, then the

[08:11] and when it comes out here, people will see that the trend line is also being formed, buyers will also be added here, firstly buyers, some buyers will be added here, okay, those who Then when the breakout happens again, some buyers will enter here.

[08:26] Ok? And here your trade will be made and that is why the market gives good momentum. Now if you make an entry here, then 1:2 1:2 okay? You have to make the target 1:2 only.

[08:41] But your first target will always be the market structure from where the market had reversed in the previous time. number one. This will become our number one target. After that, we can make whatever we want, 1:2, 1:3.

[08:56] So now you understand why the market will go up. Ok? Because the momentum was created, those who had missed it from here came down. Could not everyone will be able to catch every breakout point.

[09:11] make entry here and then the trend line is formed. The market moves. Ok? This is the bullish trend line. Ok? What is in a bullish trend line? Momentum was gained, there was a pullback. Then we have to go up to the market. You will trade where the trend line is formed.

[09:23] Ok? So friends, here we taught Arjun Bhai how to draw bullish trend lines. Ok? Next, I will get the chart made for you from this. When we move on to the chart, I think you will be able to draw a good trend line. Ok? Now let

[09:37] us learn the bearish trend line here. Ok? What happens in a bearish trend line ? The market falls down from one point anywhere. We came down to the market. Ok? Now the same scenario is there. Are

[09:50] people able to hold trades when the market goes one way up? Ca n't catch it. So again when the market falls, people will hold trades in bearish market and also in buying trades in the But in a bearish market, people are unable to take trades because the market

[10:04] grows slowly but when the market falls, it has no speed. candle came down. Ok? You missed your trade. Now How will the market see a pullback? The market went up.

[10:20] Ok? Then she came down. From here your trend line starts forming. There will be a So your trend line starts forming. Yes. ? Now see point number one is connected here. Point number two is connected here.

[10:36] Your trend line is formed. Yes. Trade will be made. Trade will be made. Where will you enter? On the second point. Where there is no breakdown second point, we need two candles connected only

[10:49] then there will be a valid trend line. You should always remember where the two points will connect. Trade only when these two candles connect and give a breakdown for the third time. as many candles as you want. But at least two candles should touch the

[11:06] trend line. Only then will your trade be considered a valid trade. Ok? You have to make an entry when the breakdown occurs for the third time. Ok? Ok? You can place stop losses in two ways. Many people face problem as to where to place stop loss? So many times

[11:19] you have to keep stop loss on swing. If the market falls here, Resistance. Resistance will be formed and the previous swing Where the market came from. Swing created here. Ok? Resistance was created and the

[11:33] market moved downwards. So first your SL can come here. Ok? This is in a scenario when your risk reward becomes good. Meaning if there is a big target on the downside then you should because you have learnt where to enter on the trend line

[11:46] but where to place the stop loss, you placed one on the swing point and the second one you can either place it here or you can place a stop loss on the high of the 15 minute candle which closes below the trend line, candle which closes below the trend line,

[11:59] where to place a stop loss on the candle, so now you have understood here how to make a bullish trend line, in what way, please

[12:11] and how you will make a bearish trend line. Bullish trend line. Now where will we make entry into this Will make entry on breakout. Where will you place the stop loss?

[12:26] keep it on the swing. To this side. Like this straight to this. This will be our stop loss point for the moved upwards. What can be our minimum target? 1 2 1:2 And by the way, I told you one more point about the

[12:40] 1 3 1 2 No, this this will be the target number one, because it breaks out

[12:52] gives a lot of bullish momentum, this is the bullish trend line, similarly, in the same way, I hope okay, so now let us move on to the chart, let us understand all the things on the chart, then it will be understood more there, so Arjun Bhai, now we have come to the chart, okay

[13:07] ? When a person comes to the chart to draw a trend line, his mind gets confused bullish trend line is visible. A bearish trend line is visible. But first of all, let board. Now let me show a live example in the chart.

[13:21] Ok? So let me show you the bearish trend line here right now. Ok? Let me What were we supposed to do? Had to connect week to week. Ok? One, you saw a bearish trend line forming. Yes. There was a breakdown , momentum was seen. Yes, there was good

[13:37] momentum. Ok? In this way, you will see bearish trend lines in many places. Ok? Now let me tell you a bullish trend line first. Ok? chart back and forth a bit. One, if we draw a trend line from here, it is a bullish trend

[13:50] line. If we connect this week with this week. Ok? So here the find a little bit bigger somewhere trade. Ok? Let's come here. come here.

[14:04] Ok? Connected the second width. Connected the second one. There was a breakout in the market. Got momentum. Then here the market broke out on the upside and came down a little. Then someone went upstairs, someone went upstairs. Ok? Bearish here Bearish

[14:16] trade found here. A little more, if we carefully look for a trend line somewhere, then a trend line is being formed here. Bearish trend line from the bottom here. Ok? If you look carefully, the first week is connected here. The second velocity is connected here. This trend

[14:29] line was formed. The market gave a breakdown. The market has gone sideways. So you buying trend line is forming somewhere. Here you are getting the buying trend line So now you show me a trend line somewhere. Draw a trend line at any point here. The

[14:42] show me a trend line somewhere. Draw a trend line at any point here. The Not there and will connect above. Yes. This is the point.

[14:56] See, it can be made here in two ways. One, this can become your first one. Are we okay? Then let's suppose you created the market trend line from here. Made from this place. Ok? This trend line can be formed from this place. Yes.

[15:11] Ok? You can also see a bearish trend line forming here. The bearish trend line must also be where to draw a bullish trend line in the market ? Where is the bearish trend line? It you look carefully, you will see the strategy that I told you to take the

[15:27] Here you connected another trend line in the middle of this trend line. Target has been achieved in bearish trade also. A bullish trade has been made. The bullish trade has gone trade is formed here. Then it is going on. Bearish trade is also being formed here. This means that

[15:41] Ok? Ok? And the biggest doubt that a beginner has is where to draw a bullish trend line and where to draw a bearish trend Because if this concept is not clear to you, then you will

[15:56] bearish trend line will be drawn. Where you want to trade bearishly, you will create a bullish trend line and ultimately you will incur a loss. So now I will take you to the second part of this video. Ok? In the second part, I will explain to you

[16:10] Ok? In the second part, I will explain to you so that you can close your PNL in green maximum time. By now you have

[16:22] How to make it. Yes. But you will find out which trend line to draw at what time But you will find out which trend line to draw at what time you are liking this video till now and this series of Dinesh Bhai which we have started on this channel,

[16:36] you must be finding that series very amazing too. If you are a beginner. Ok? So you will be getting the core value of the market. Exactly how trading is done in the market. Ok? If you like this video then please like the video.

[16:48] Subscribe to the channel because there is a lot of amazing learning content coming soon. Ok? And if you do not subscribe to the channel, you will and we will meet in part two. Ok.