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Example of how to draw a trend line using the StochRSI indicator

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I have explained how to draw a trend line before, but I will take the time to explain it again so that it is easier to understand.

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When drawing a trend line, it must be drawn on the 1M, 1W, and 1D charts.

However, since I focused on understanding the concept of drawing a trend line and the volatility period that can be seen with a trend line, I will explain it only with a trend line drawn on the 1D chart.

Please note that in order to calculate a somewhat accurate volatility period, support and resistance points drawn on the 1M, 1W, and 1D charts are required.

I hope this was helpful for understanding my thoughts on the concept of drawing trend lines and how to interpret them.

The main reason for drawing trend lines like this is so that anyone who sees it can immediately understand why such a trend line was drawn.

Then, there will be no unnecessary disagreements about the drawing, and each person will be able to share their opinions on the interpretation.

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When drawing trend lines, the StochRSI indicator is used.

The reason is to secure objectivity.

When the StochRSI indicator touches the oversold zone and rises, the low corresponding to the peak is connected to draw a trend line between low points.

And, when the StochRSI indicator touches the overbought zone and falls, the Open of the downward candle corresponding to the peak is connected to draw a trend line between high points.

If the peak is not a downward candle, it moves to the right and is drawn with the Open of the first downward candle.

If you refer to the candlesticks of the arrows in the chart above, you will understand.

The trend line drawn as a dot is a high-point trend line, but it is a proper trend line because it does not touch the overbought zone between highs.

Therefore, you can draw a trend line corresponding to trend line 1.

Accordingly, around March 25-29, around April 8, and around April 14 correspond to the volatility period.

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You can see how important the low-point trend line (2) is.

If the high-point trend line is properly created this time and the low-point trend line and the high-point trend line are displayed in the same direction, the trend is likely to continue along that channel.

If the StochRSI indicator rises and a peak is created in the overbought zone, you will draw a high-point trend line that connects to point A.

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Thank you for reading to the end. I hope your transaction will be successful.

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