## 🔍 Definition
Trendline, also known as the line of trend, refers to a line that connects a minimum of 3 points of contact (peaks or troughs) on a stock chart, such as those of Vietcombank (VCB), FPT, or HPG. With only 2 points, the line is considered tentative.
✔ Drawing Rules
- Minimum of 3 points of contact
- Reasonable distance between points (not too close)
- Moderate slope (not too steep, > 60° = unsustainable)
- Drawing through significant peaks/troughs, not all of them
🏈 Trading Strategies
- Buy/sell when the price touches the trendline and confirm with other indicators
- Set stop-loss on the other side of the trendline
- Trendline break with volume confirmation = trend reversal
- Avoid trading trendlines in sideways markets
📈 Example: VHM 2024
An upward trendline can be drawn from the lows of 38K (03/2024), 41K (05/2024), and 47K (08/2024). Each time the price touches the trendline with an RSI < 40, it's a buy signal, resulting in 3 winning trades.
🚀 Drawing Tools on Vnstock
The symbol modal on Vnstock offers trendline drawing tools with auto-detection of significant pivots, allowing for accurate drawing from the start.
🔌 Read more from the same cluster:
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