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When markets start moving fast, that’s where a lot of traders lose control. So instead of guessing, I want to show you how I actually track and navigate steep up or down action step by step.
Let the Price Action Unfold
When a steep move begins, you’re not going to know right away where to draw your trendline. That’s one of the biggest misconceptions — that trendlines should be applied at all times, in all conditions.
You have to let the price action unfold first. In this ES chart case study, the futures started out more sideways, then began to move lower, and eventually shifted into a sharper move. It wasn’t until that move started to develop that it made sense to begin tracking it.
Identify the Anchor Points
Once the move begins to take shape, the first thing I look for is the low or high that actually started it. That becomes the first anchor point.
Then you look for the next level to connect a trendline, and the best connecting point is often the level where the market actually started picking up again. Not simply the next higher low or lower high, but the candle that was the platform before the next forceful move.
Create the Initial Trendline (Your Guide, Not a Rule)
Once I have those two points, I draw my trendline and make sure it’s snapped precisely to the price action. At this stage, it’s still technically a “tentative” line — not a confirmed one — but that’s okay.
You’re a real-life trader — you have to work with what’s happening in real time, not wait for textbook perfect conditions. This line is there to guide you, not to dictate every decision.
Create an Additional Projected Trendline
From there, I create a parallel copy of the trendline and align it with the high that sits between my two anchor points. That gives me a projected upper boundary — essentially forming a channel around the move.
The important thing here is understanding what this line represents. It’s a projection, not actual traded price, so I always make it a dashed line (not solid) and treat it as a guide rather than a hard level.
Prioritize Price Levels Over Trendlines
This is really important. A trendline can act as support or resistance, but it is never more important than actual traded price levels.
If the market pulls back and holds at a prior low — even if it doesn’t touch your trendline — that level matters more.
Past traded levels will always carry more weight than a drawn line.
Be Careful When Switching Timeframes
One final thing to keep in mind is that trendlines won’t always translate perfectly across timeframes. The angle and alignment can shift depending on how the data is displayed.
Because of that, I prefer to stay anchored to one timeframe and use those values as my guide, even if I’m trading off something faster or slower.
Putting It All Together
At this point, you’re not trying to predict exactly what the market will do. You’re just giving yourself a way to stay oriented as the move unfolds. You have your lower trendline acting as support, your projected upper boundary acting as a guide, and your key price levels from past action.
These become your guardrails. If the market continues higher, you have a sense of where it might pause. And if it breaks lower, you’re already prepared for that — instead of reacting late.
If you found this helpful, go ahead and watch the full video and hit the Like button on YouTube.
🚨 PS — Watch the Replay: Last Night’s Weekly Trading Show
We had our 15th broadcast of Ticker Request Live yesterday!
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And the Trader Training calendar has been updated! Here’s what’s on deck:
- First 40 Office Hours Q&A
📅 Wednesday, April 22 at 4:30 PM ET - Hima at the Wealth365 Summit
📅 Thursday, April 23 at 10:00 AM ET
Visit himareddy.com/events for full details and registration.
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