What is Trendline?
Trendline is diagonal support or resistance drawn across pivots.
Formula
Reward-to-risk: ($195 - $180) / ($180 - $176) = 3.75:1
Indian market context (NSE)
Reference levels: Nifty 50 at 24,300, Reliance Industries at ₹1,300, Bank Nifty futures at 55,000 (lot size 30). Examples below show how Trendline shows up on Indian index, equity, and futures books — update to live quotes in your journal.
Nifty 50 perspective
Trendline on Nifty (24,300): on the 15-minute chart, combine with session VWAP and 9:15–10:00 liquidity — index trendline signals misfire on expiry Tuesdays without volume confirmation.
Reliance Industries perspective
Trendline on Reliance at ₹1,300: daily vs hourly settings diverge around results and ex-dividend dates; note corporate events in journal when trendline readings spike.
Bank Nifty futures perspective
Trendline on Bank Nifty futures (55,000): first-hour signals differ from post-14:30 behaviour; avoid standalone entries when banking names lead the move.
How to validate
- Forward-test Trendline on paper or sim for two weeks after rule changes.
- Validate only on trades where Trendline settings matched the written playbook.
- Split results by trending vs range weeks on Nifty before trusting the signal.
- Require higher-timeframe bias agreement if that is part of your rule.
How to track in TradeLyser
- Add Trendline reading to trade entry notes (value + timeframe).
- Create tags: “Trendline aligned” / “Trendline ignored”.
- Monthly: filter trades by alignment tag and compare win rate and avg R.
- Screenshot chart context for mentor review on disputed trades.
Best practices
- Combine Trendline with higher-timeframe bias — not as a lone trigger.
- Avoid curve-fitting settings on less than three months of tagged data.
- Refresh playbook screenshots when changing Trendline parameters.
- Skip trading when Trendline conflicts with written risk limits.
Common pitfalls
- Treating Trendline as a guaranteed reversal signal.
- Optimising parameters on one bullish month only.
- Trading against higher-timeframe bias because Trendline “said so”.
- Failing to log when you overrode Trendline discretionally.
How to use this in TradeLyser
Save chart with trendline at entry; review broken vs respected lines quarterly.
Related terms
A breakout occurs when price closes beyond a boundary — range high, triangle, or prior day level — that traders were watching.
Price action trading uses raw price structure — highs, lows, patterns, and context — over lagging indicators.
Resistance is a price area where supply has repeatedly slowed rallies. It is a zone, not a single tick — breaks need confirmation.
Support is a price area where demand previously stepped in, slowing or reversing declines. It is a zone — not a single tick — and can fail.
FAQ
Two touches enough?
Define minimum touches and ignore internal lines.
Trendline break entry or retest?
Different stats — tag method.
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