2 Rules for Trendline: 1. Identify the significant lows. At least three points 2. Find the best fit among the significant lows
We can apply the 2 points to a down trendline analysis as well. Looking-out for the significant highs instead.
Gold started its rally after year 2000. We could see it started forming its primary trendline since 2006.
Primary trendline is the key support of any market. When analyzing from a larger timeframe like a weekly chart, it should be considered as an investing position into the long-term. Secondary trendline on a weekly chart, I will deploy for add-on with stop loss in mind.
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