Trendlines are one of the most simplest and the easiest technical indicators. As a trader, you should learn how to draw trendlines accurately. PRO traders always respect these trend lines. so do the Markets. When you combine, these trend lines with candlestick patterns, you can get highly profitable trading signals. Both supplement and confirm each other!

There are many candlestick trend reversal patterns that give warning ahead of time about the impending trend reversal or turning of the market. In the same manner, there are many trend continuation pattern that when appear indicate that the trend is likely to continue for sometimes in the future. When you combine these candlestick patterns with trendlines, you got a good confirmation that the trend is going to continue or reverse itself.

There are many candlestick patterns that can inform you about the impending trend reversal. When you combine them with trendlines, you get good warning ahead of time. In the same manner, there are many candlestick patterns that tell of the trend continuation, so if you are in a trade and you find a trend continuation pattern appearing above or below the trendline, it means you can safely continue in your trade for more profits.

There are simple candlestick patterns and there are complex candlestick patterns. Now, there are candlestick patterns recognizer indicators available that you can install on your charting platform. These indicators can accurately identify a candlestick pattern. When you combine, this candlestick pattern with the trendline, you get a good confirmation about trend reversal and trend continuation.

Trendlines are very important in making entry and exit decision. If you use them correctly, you can make profitable trades.

The problem with trend lines is that they change often. Everyday, you will have to draw a new trendline. One method of placing a stop loss is to use a support trendline or a resistance trendline and place the stop loss just below or above it.

Another approach is to use a closing price at the end of the day to decide whether to continue with the trade or exit. If the closing price has broken the trendline, simply exit the trade. The problem with this strategy is that when you check at the end of the day, the price might have gone further than you might had wanted.

However, the price can dive and close much lower or higher than the trendline at the end of the day making your exit much lower or higher than if you had used a stop loss. It is up to you to decide which method fits your trading strategy and style best.

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