Multiple Trend Lines Trading System:
This is the part where you will be most interested in as I will be showing you how I use multiple trend lines in my trading. For short term trading, you can make use of your short term trend line for entry purposes.
Whenever you see the price breaching the short term trend line, you should immediately check whether it is a valid breakout using the technique taught in Section 1.3. If it is indeed valid, you should then enter a trade in the direction of the breakout.
As stated in Section 1.4, a strategy is not complete if you do not have a clear exit point. For this trading system, you can then use the medium-term trend line as an exit target as the price will most probably respect that trend line and get repelled by it.
In addition, you can also use the medium term trend line as an entry signal. When you see the price breaking below the medium trend line, you can make use of the long term trend as your exit target.
See how the price breakout of the short term trend line (RED) and then moves toward the medium term trend line. After the price hovers around the medium term trend line (BLUE), it eventually broke through it and then moved toward the long term trend line (BLACK).
Similarly, you can see the price hovering around the long term trend line before breaking through it.
From the above example, it shows that you can make use of the medium term trend line and long term trend line as your exit target. This technique can be combined with swing trading and breakout trading. When you enter a swing trade or breakout trade, you can use the medium or long term trend line as your exit position.