I just noticed that many people are still confused about using trend lines in trading, even though they are simple tools that are truly useful.

Simply put, trend lines are not complicated; just draw a line connecting at least three high or low points of the price, and you'll get a line that tells you the direction the price is trending. Personally, I like to use them to find good entry points instead of trading randomly.

The trend line can roughly tell you four things: First is the price trend. If the line slopes upward, it indicates an uptrend. If it slopes downward, it's a downtrend. If it's horizontal, the trend is unclear. Second is support and resistance. When the price is in an uptrend, the trend line acts as support; in a downtrend, it acts as resistance. Third is that it helps predict price movements because the slope of the line indicates the rate of change of the price. Lastly, trend lines also signal trend reversals.

In actual use, I often time my entries when the price bounces off the trend line. Observe the price reversal points first, which can often be seen from price patterns or breakouts. Then, find at least three swing points and connect them with a line. If the line touches the price multiple times, it indicates strength and makes for a good entry point.

I often use two strategies: The first is to wait for the price to break the trend line, then pull back to test it. If it can't go back above the line, it indicates a genuine trend change and a good entry point. The second is to wait for the price to squeeze toward the line and then bounce away, which often results in good profits from this move.

But one thing to watch out for is false breakouts. When the price breaks out but then re-enters, it can lead to losses. To avoid this, check the trading volume—if the breakout occurs with high volume, it's stronger. Always set a stop loss because there's no 100% way to prevent false breakouts. However, if you manage risk well, you can reduce the chances of losses.

In summary, trend lines help make trading more systematic instead of random. Give them a try—understand both their advantages and precautions, and they can be a truly useful tool in real trading.