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  1. Beginner
    Early Stages for Beginners
    8 Topics
  2. Forex Terminology
    11 Topics
  3. Margin & Leverage
    2 Topics
  4. Personal Psychology Questions
    2 Topics
  5. Psychology for Beginners
    7 Topics
  6. Intermediate
    Identifying Scams
    2 Topics
  7. Brokers for Beginners
    5 Topics
  8. Technical Analysis
    13 Topics
  9. Market Structure
    5 Topics
  10. Completion
    Risk Management for Beginners
    8 Topics
  11. Fundamental Analysis
    9 Topics
  12. Advanced
    Using Indicators
    6 Topics
  13. Technical Analysis (Part 2)
    8 Topics


So by now, we know the market moves in three directions: upwards, downwards, and sideways. When it comes to moving up and down, there’s a thing called a technical analysis tool called a trendline that helps us spot key areas where we can enter the market.

(You never state how price needs to make higher highs & higher lows & lower highs & lower lows. That’s the main point of a trendline)

Once you’ve placed a trendline, you’re able to watch price bounce against it. This way, we’re able to make sure we’re always on the right side of the trend. Now of course, you can trade against the trade, which is where countertrends come into place.

When looking at a clean chart, these are the first things you need to keep in mind:

  • First, you identify the trend.
  • Then, you ride with it and try not to trade against it.
  • The market tends to consolidate after a huge trend.
  • Look for signs of weakness to exit, or place a different entry.
  • If the pattern is strong, it should create a momentum candle through it.

NOTE: You need 3 touches of the trendline to make it a valid trendline

First let’s start with a simple UPTREND. This is where your trendline will act as support for price to bounce off of.


A DOWNTREND will use the trendline to act as support as well.


Now I know you may think that’s all for trendlines as the only other market direction we have left is sideways. There’s also a thing called COUNTER TRENDLINES. We will go more in depth in the next section on how to use them to our advantage. For now, you can use the illustration below to get an idea of what we’re about to teach you. Here, the overall long-term trend is an UPTREND. However, once you start scaling down to lower time frames, you’re able to place counter trend lines to use in your trading strategy.

Counter Trendlines