Great book by Victor Sperandeo "Trader Vic - Methods of a wall street master" , specifically the section on drawing correct trendlines.
I see a lot of traders (including some times myself) drawing wrong trendlines especially if they are bias to long or short.
Per Trader Vic - For a downtrend within the period of consideration, draw a line from the highest high point to the lowest minor high point PRECEDING the lowest low so that the line does not pass through prices in between the two high points (i.e. blue line).
Simpler said : Draw the line from the highest high to the highest high that precedes the lowest low, so that all price action is below.
Once this trend line is broken , to confirm the uptrend, we want to see higher highs and lower lows AND "Prices go above the minor high point (i.e. the orange line)
TLDR:
$PLBY no longer appears to be in a down trend and has pivoted now to the start of an uptrend.
I see a lot of traders (including some times myself) drawing wrong trendlines especially if they are bias to long or short.
Per Trader Vic - For a downtrend within the period of consideration, draw a line from the highest high point to the lowest minor high point PRECEDING the lowest low so that the line does not pass through prices in between the two high points (i.e. blue line).
Simpler said : Draw the line from the highest high to the highest high that precedes the lowest low, so that all price action is below.
Once this trend line is broken , to confirm the uptrend, we want to see higher highs and lower lows AND "Prices go above the minor high point (i.e. the orange line)
TLDR:
$PLBY no longer appears to be in a down trend and has pivoted now to the start of an uptrend.