Beginner's Guide to Technical Analysis - 2

Swing Trading = Trend Trading
If you buy a stock at a support level, but overall trend still a downward trend, it will likely go lower too.

4 Things to take note when drawing Trendline

It should have gentle slope
It should cover everything including the wicks
3 point touches
Trend Line more than 15 candle (hourly timeframe)

Compared to horizontal trendlines, non-horizontal trendlines are more meaningful and useful in show the trending market (Market moving higher or lower , not consolidation)

3 Ways to enter a Trendline

1) Enter at the bottom of a Uptrend (for Swing Trades)

2) Buy a Breakout Trade (swing)
As you can see there is a change of trend on the right side of the chart

Breakout = Change in Trend

When you want to enter a trade, always draw Downtrend lines.
if a stock can break downtrend then it have chance of moving higher

Bitcoin example

When you want to sell a stock, always draw your uptrend lines

Overbought , this is not a breakout

Change of Trend

If long stocks : Find Major Uptrend stock, with a current downtrend , wait for breakout
If short stocks : Find Major downtrend stock, with a current uptrend

Short cut to find what is major trend ? Use EMA 20
indicator: Exponential Moving Average (EMA)
indicator Timeframe: 1 day
Indicator Length : 20