Trend lines are probably one of the most important aspects
of technical analysis. I see trend lines as a map of where the stock pattern is
going.
Not using trend line is like going to a place you do not
know without a map. Surely a person can find their way around an unknown town without
a map but it will take much longer and the chance for making a wrong turn is
very likely. In stock trading, this means losing money.
It is great to have a
map of an unknown town but the person using the map needs to know how to use
the map. Using trend lines to map out a stock is great but, the person using
the trend lines needs to know where to place the trend lines before the trend
lines become effective.
Trader using technical analysis to determine if the stock
price is going up or down should practice using trend lines properly.
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