← Trendline Course · Module 13 of 15
Eight expensive habits — and how to avoid every one of them.
Understanding what not to do is just as important as knowing what to do.
The most common error. You decide a stock is going up, then draw a line that confirms that view — ignoring touchpoints that contradict it. Always draw the line the chart is showing you, not the one that makes your thesis look correct. The market doesn't care what you think.
Touching a trendline is not a signal. A bounce looks like a bounce until it breaks through. Wait for the break and confirmation.
Drawing trendlines only on your trading timeframe is like navigating a city without a map. You might make a bullish 5-minute trade while the daily shows clear downward pressure. Always know the bigger picture.
Assuming every break is real is expensive. Always ask: "Is there sufficient energy in this move? Is this a small candle struggling to close beyond the line, or a large impulsive move?"
When a trade nears your stop, the temptation is to move it out to "give the trade room." This is how small losses become catastrophic ones. Honor your stops.
Markets create multiple trendlines at once — primary, steeper secondary, and opposing lines. Only drawing one gives an incomplete picture. Use the top-down, fan approach.
No trendline is ever perfect. Price will occasionally pierce a line by a small amount before reversing — this often confirms the line rather than invalidating it. Think in zones, not precise lines.
Once you're in a trade on your timeframe, don't switch to a lower one looking for a reason to exit early or hold longer. Commit to your timeframe, set your stop and target in advance, and let the trade run.
Next module: The Trading Checklist →
Disclaimer: TrendlineFinder is an educational research and charting tool, not a financial advisor. Content is for educational purposes only and is not investment advice. Trading involves risk. © 2026 Wicked RC LLC. · Terms · Privacy · Financial Disclaimer