Trendlines

Trendlines is a tool that will Automatically plot trendlines based on the current Price Action. This can be very effective in looking for reversal points especially used in “Confluence” with other Key Levels. 

These are often used as Moving Levels of Support and Resistance.

These are often used as Moving Levels of Support and Resistance.

Trendlines Modes:

Off - Default position and turns the Tool off

Wicks - Plots Trendlines automatically using the Wick highs and lows from the relevant Candles(Bars).

Bodies - Plots Trendlines automatically using the Body highs and lows from the relevant Candles(Bars). 

Trendlines are very effective when looking at 3rd tests and gains or losses of these trendlines. It always takes 2 Swing Points to create a Trendline and after that point, the 3rd time Price interacts with that Trendline becomes relevant to the current Price Action. Bouncing off of trendlines, breaking through trendlines, and backtesting trendlines create important points of reversal that can be traded. 

Sensitivity

This is related to the Sensitivity of the Trendlines and changes the lookback length and deviation of the indicator

The default setting is 5 and has a sensitivity range of 1 to 10 at .5 increments. 

Increasing the sensitivity will plot the Trendlines closer to the current Price Action and plot them more frequently. Decreasing the sensitivity will plot the Trendlines further away from the current Price Action and less frequently. 

It is important to adjust sensitivity based on the current Price Action and based on the timeframe that is being used. Lowering the sensitivity will only plot the most relevant trendlines while increasing the sensitivity will plot many trendlines.

Style

Adjusts the type of lines used by the Trendlines Tool. The default line is solid but can be changed to dotted or dashed

Color

The default color is yellow but can be changed to any color.