How Do We Trade Using A Trend Line?

Two techniques are prevalent.
Enter when the price finds support or resistance at the trend line.
Enter when the price breaks through the trend line
Trend line as support or resistance
When a trend line is noticed and if it’s holding as either support or resistance, enter into the market once the price returns to it. 

1 Short entry after the price finds resistance at the trend line
Two stop loss above the trend line
The above chart illustrates the trend line used as resistance and the price used to find an entry.
A stop loss is put on the other side of the trend line.
The size of the stop loss is based on the strategy involved.
Trend line break
This technique utilizes the actual breakout of the line, which regulates an entry.

Entering With A Trend Line Break Involves Two Methods.

Aggressive entry
Conservative entry

Aggressive Entry

Enter as soon as the candles break out and close on the other side of the trend line.

1 Short entry after the price broke through the trend line to the downside
Two-stop loss is placed above the trend line
The illustration chart above depicts that the entry can be immediate as soon as the candles close on the other side of the trend line.
Stop-loss is placed on the other side of the trend.

Conservative Entry

Number 1: Price breaks through the trend line to the downside
Number 2: Wait for the price to return to the trend line and find resistance.
Number 3: Sell Entry Once determined that the breakout is true, enter into a short entry
Number 4: Stop loss is placed above the trend line.
The chart above illustrates a trend line that has been broken after acting as support.
The price was then tested from the other side as resistance, further confirming that the breakout is expected to continue.

Nut Shell

An overview of the lesson discussed so far.
Lines drawn at an angle above or below the price are trend lines.
They hint at the immediate trend and trace when a trend has changed.
They are also helpful as support and resistance by providing space to open and close positions.
Trend lines are drawn below the price in an uptrend.
Trend lines are drawn above the price in a downtrend.
A straight line must connect two lows in an uptrend.
A straight line must connect two highs in a downtrend.
At least three highs or lows should connect the trend line to make it valid.
The more times the price touches the trend line, the more valid it is.
Another trading technique is a trend line break, where the price breaks through the trend line.