The reality is drawing trendline is not exactly that clear-cut.

It takes experience.

The more time you spend drawing trendline and see how the price move relative to your trendline and as you start to adjust the trendline over time, you’ll be able to get an understanding of how it moves.

So this is actually the part which I feel that it will be useful, if you want to become a discretionary trader right, is that you are able to follow someone closely who you know is very experienced in drawing lines.

Keep looking at how that person draws the lines and if you keep seeing, but you don’t just take it literally as what he said as the truth, you see how the experienced trader draw his trendline and then you reflect on yourself is this how I draw it.

Over time, you will be able to merge them closer and closer and closer together until ah now I understand why he draws it this way.

So you would take a lot of different scenarios, a lot of different types of charts, different occasions, different timing before you start to align towards it and over time it will become something as a second nature to you just like how you learn to ride a bicycle for example.

So first time second time you keep falling off then you try to observe how people balance and adjust things then you try to follow as closely as what they do.

Of course, you don’t follow those people who are also stumbling on their bicycle.

You follow those people who already know how to ride a bicycle so you try to model them and you will come to a point where you start to be able to find your own way of drawing your own trend lines which should not deviate far away from those who already have experience and know how to draw.

So there is no shortcut to that unfortunately. If you want to become a discretionary chart trader you will have to keep on doing this and if you have someone who you can keep on looking for and looking at how they draw, then that will be helpful.

Interested to receive mentorship opportunities like this with Philip?

Find out more at traderwave.com/innercircle

Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile

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