Diagonal◐ Heuristic
◆ The PatternConnecting swing points — the direction of price flow
Trendlines connect swing lows in an uptrend (ascending support) or swing highs in a downtrend (descending resistance). A valid trendline touches at least 3 points. The more touches and the longer the line, the more significant its break.
≥3 touches = valid · Steeper = less sustainable · Break = signal
Draw trendlines from body to body (closes not wicks) for more reliable levels, though both methods have advocates.
// Trendline construction — connecting swings
Key insight: Trendlines that are too steep are unsustainable — a sustainable uptrend is typically 30-45°. Steeper trendlines break sooner and are replaced by shallower ones.
Pattern bridge: Drawing a line through successive highs or lows is literally linear regression — the same best fit computed in statistics.