百萬Eric | Day Trader
百萬Eric | Day Trader|Dec 21, 2025 07:37
The most common misuse of trend lines is treating them as prediction tools. Seeing the price touch the line and going short, or breaking the line and going long, completely ignores their true purpose: trend lines aren’t for predicting where the price will go, but for showing whether the market rhythm has been disrupted. Take the movement in the chart as an example. Below the descending trend line, the price rhythm is stable: lower highs and weak rebounds. But when the price breaks through a key level and doesn’t return to the original range, while continuously holding above the trend line and breaking past previous highs, the market rhythm has already changed. At this point, the significance of the trend line isn’t that ‘the drawn line was broken,’ but rather: the rhythm that was suppressing the market has been disrupted. And ultimately, the confirmation of the breakout’s validity comes when the price doesn’t fall back below the breakout zone.
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