Now this trend line is a monster! It is long enough with 5 touching points. You
may notice that there are two groups of two points that are too close together,
but this is not a problem as long as the other points meet the guideline. Treat
a group of close points as one “big point”.
“Triangles, Flags, Wedges...”
Now that you know how to draw trend lines, you are one step away from
discovering the oldest market phenomenon: chart patterns. You are about to
learn incredibly reliable price formations that have time and time again provided
us with consistent profits.
The upper and lower trend lines are forming a triangle as seen in the next
chart. As the price is oscillating between the two bounding lines, the buyers and
sellers are in tug of war, and eventually the price will break through one of the
lines – nobody knows which one! In the next pages you will learn how to
participate in this explosive move.
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