HOW TO PROPERLY

USE TREND LINES

DCFX METHOD

DCFX - TA
Introduction
In this document, we are going to look at how to properly use trend lines while
trading and as support and resistance levels. Most importantly you need to
understand that trend lines are not signals for you to buy or sell. They are just
additional tools used with other strategies to identify key levels and reversal or
continuation of a trend.

Key concept
The key concept of using a trend line is confluence. Confluence is when a
combination of multiple strategies is used together to create one strategy.
Rules
Rules are simple:
1. Buy at support with confirmation.
2. Sell at resistance with confirmation.
3. When a trend line is broken they are turned into support/resistance for
Example: if a trend line is acting as resistance and the market broke down it
will now be acting as support.
4. Don’t force the market when plotting the trend line, the significance of a
trend line is based on how many times It has been tested without being
broken.
5. If you have issued with identifying lows/highs use a line chart to plot the
trend line cause the body of the candle is what matters.
First thing first
Always the most important step would be identifying the trend in HTF and working
your way down to LTF.
One of the best Time frames you can use to identify the main trend is the Daily time
frame.

Now that we have identified the main trend of the market using trend lines. We will
move to the H4 chart to identify the market flow using the trend lines. Always
remember we are going to use the HTF as our main template when planning entries
and exits. Meaning we are going to be trading in the coordination of our main
template.
And one key point to remember is that we are using the Daily trend line as our
major trend line (for support/Resistance)
Now we are moving to the H4 chart to identify the Market flow so we can plan
entries on LTF like the H1 chart.

Now that we have identified the minor trend lines we can look at picking trades from
a lower time frame such as H1 or 15 mins chart. I will not go into details but I will
add some common templates of price patterns in which markets act before moving.