There are many skills and characteristics that traders need in order for them to trade the financial markets successfully. The ability to understand market structure, price movements and determining the trend are all key traits. But not one of them are as important and strong discipline and emotional control.
A trader can generate substantial profits over time but it can be lost in one or two bad trades if good risk management is not applied. It is unfortunate that risk management is often overlooked as it is an essential prerequisite to successful trading.
Trend lines are drawn to connect highs or lows. Using trend lines will not only help to determine the current trend, but also reveals the possibility of a change in trend. They will form support and resistance levels where traders look for trading opportunities or closing positions.
Every move that the market makes takes place from a level that is based on support and resistance. It can be found in almost every pattern or trade setup.