How To Trade TRENDLINES (Full Guide)

Finance/Trading Content Summary (Trendline Strategy Master Class)

Presenter / Claims / Positioning

• Presenter: Tori
• Claims:
  • 10 years of trading experience
  • $500,000 in trading profits (no specific timeframe provided)
• Transparency: States she “showcases every single trade,” including:
  • Broker statements
  • Trade breakdowns
• Style emphasis: Simplicity using minimal indicators, focusing on:
  • Price action
  • Market structure
  • Clean charts

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Markets and Instruments Mentioned

Forex (Examples)

• Currency examples: EUR, USD, GBP, JPY
• Typical pair format mentioned (e.g., USD vs EUR, GBP vs JPY)

Crypto (Examples)

• Bitcoin (BTC)
• Ethereum (ETH)

Stocks (Examples)

• Tesla (TSLA)
• Apple (AAPL)
• Amazon (AMZN)
• Netflix (NFLX)
• Home Depot (HD)
• Nvidia (NVDA)
• GameStop (GME)

Futures (Categories + Examples)

• Gold (metals)
• Oil (energies)
• Corn (agriculture)
• S&P 500 index futures (referenced as “S&P 500” / “SPY, S&P 500”)
• NASDAQ and Dow (mentioned as indices)

Platform

• TradingView used for charting and drawing tools (e.g., trendlines, horizontal lines)

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Timeframes / Charting Concepts

Candles

• Body: shows direction
  • Green = open to close up
  • Red = open to close down
• Wicks: intraday high/low beyond open/close

Timeframe note

• Lower timeframes (e.g., 5 min, 1 hour) → more noise
• Higher timeframes (e.g., 4 hour, daily, weekly, monthly) → bigger picture
• Her preference: 4-hour and daily for trading, while using higher timeframes for top-down analysis.

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Methodology / Framework Taught

1) Identify Market State

Select one of three overall directions:

• Uptrend / bullish
• Downtrend / bearish
• Consolidation / range / sideways

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2) Trendline Construction Rules (Drawing)

• Trend line: diagonal line connecting points that define market structure
• TradingView tool: uses the Ray tool for trendlines

Uptrend (Bullish Trendline)

• Draw using lowest points as anchors
• Line should “support” price

Downtrend (Bearish Trendline)

• Draw using highest points as anchors
• Line should “cap” price

Validation principle

• Price should respect the line repeatedly.
• For the strategy’s trendline work: price must not intersect/poke through the line.

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3) Support & Resistance (S/R)

• In a consolidation/range context, use the horizontal line tool:
  • Support: a “floor” with multiple touch-and-reject points
  • Resistance: a “ceiling” with multiple touch-and-reject points
• Emphasis: S/R tools work “even better” when aligned with trendlines (integration mentioned later, but specifics not fully detailed in subtitles).

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4) Entry/Exit Mechanics Using Order Types

Market Order

• Executes at the current price immediately.

Limit Order

• Executes only when price reaches the specified level
  • Example: if price is $100, limit at $50 or $150

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5) Risk Management with TP/SL (Order Placement)

Take-Profit (TP)

• Predetermined level to close and lock gains
  • Example: entry at $100, TP at $150

Stop-Loss (SL)

• Predetermined level to limit downside
  • Example: entry at $100, SL at $50

TradingView demo

• TP/SL can be managed via dragging on charts
• TP/SL are presented as “essential” to risk management.

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6) Risk Management Rule (Position Sizing)

• Risk no more than 1% to 3% of capital per trade.
• If losses exceed that threshold, reduce position size / risk.
• Rationale: keep drawdowns small enough to feel like business expenses/fees rather than account-damaging events.

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7) Core Strategy: “Three Touch Point Trend Line Break” + Top-Down Analysis

Top-Down Analysis Sequence

Start high, then move down:

• Monthly → Weekly → Daily → 4H
  • She stops at 4H for her trading.
• If trading lower TF, she continues:
  • 4H, 1H, 30m, 15m, 5m

Top-Down Trendline Drawing Rules

• Draw on higher timeframe first, then refine on lower timeframes.
• When creating a “steeper” iteration:
  • Use the most recent touch point as the new anchor (point A)
  • Ensure price does not intersect/poke through the line.

Entry Trigger

• Wait for a break of the identified three-touch-point trendline.
• That break is treated as the entry signal.

Safety Line (Trade Management + Exit Rule)

• Draw a secondary, steeper trendline called the safety line.
• Exit rule:
  • Close the trade when price breaks the safety line.
• If price respects the safety line, it may continue to form another touch point—staying in the trade until the break occurs.

Examples Mentioned (Conceptual)

• Example 1: a setup described with favorable movement; exit only when the safety line breaks.
• Example 2: crude oil on 4H
  • Uses a “1-2-3 touch point” trendline
  • Entry on break
  • Stay until the safety line eventually breaks, then close for profits

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8) Testing Process (Backtesting / Forward Testing)

• Backtesting: test across historical data to measure performance in different market regimes (bullish/bearish/consolidation)
• Forward testing: observe in real time using a demo account (no real risk)

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Performance Metrics and Tracking Tools

Journaling and Statistics

• Emphasizes journaling over just win/loss outcomes:
  • Track decisions and emotions
  • Focus on process improvement
• Tool mentioned: Tradesella (spelled “Tradzella/Tradesella” in subtitles)

Reported metrics she tracks:

• Win percentage
• Average win to loss
• Profit factor
• Per-trade breakdowns of what went right/wrong

Promo/Discount Code

• Tory 10: 10% off monthly
• Tory 20: 20% off yearly

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Broker / Demo Trading, Leverage, and Margin Disclosures

Broker Role

• Broker is described as an execution intermediary.

Leverage Example

• 10:1 leverage means:
  • $1,000 controls a $10,000 position

Margin and Risk

• Margin: collateral required to hold a position
• If price moves too far against you without sufficient capital:
  • Margin call may occur
  • Position may be closed

Broker Mentioned

• TradeStation (noted as regulated in the US)

Demo Trading Guidance

• Trade live markets with simulated capital.
• Suggests setting demo account size to match realistic live risk (not “millions”).

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Key Explicit Numbers Mentioned

• $500,000: claimed trading profits (lifetime/probably; exact timeframe unclear)
• Risk per trade: 1%–3%
• TP/SL illustration:
  • Entry: $100
  • TP example: $150
  • SL example: $50
• Chart examples noted in subtitles (approximate / sometimes inconsistent):
  • AAPL around $106
    • Example TP: $157
    • Example SL drag: $55
    • Realized profit mentioned: $50.89
    • Later phrasing suggests “up $484” (basis unclear)
  • HD around $27
    • Subtitles reportedly reference TP/SL values around $50, despite the $27 price context (likely subtitle/logic mismatch)

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Explicit Recommendations / Cautions

• Trading is not “easy money” or “rich overnight.”
• Don’t trade rent/savings—it becomes like gambling.
• Don’t rush the process; expect emotional differences between demo and live trading.
• Do backtesting + forward testing before going live.
• Strategy caution: don’t strategy-hop; consistency requires sticking with one approach long enough.

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Disclosures / Disclaimers

• No explicit “not financial advice” wording appears in the provided subtitles.
• Risk disclosures are general:
  • margin/leverage risks
  • trade only money you can afford to lose

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Presenters / Sources

• Presenter: Tori (no other presenters named)
• Platforms/Tools:
  • TradingView
  • Tradesella (journaling/testing tool)
• Broker mentioned: TradeStation