Lesson 11 | How to Draw a Rhythm Line
Rhythm Trading, Lesson 11. A rhythm line comes from a valid point: the proportion of AB that C retraced is the rhythm of the move. Carry that proportion forward with percentage lines as new highs form, and you have the rhythm line.
I wrote this guide based on how I actually trade gold. No theory — just what works after 10 years.
Key takeaways
- The proportion of AB that the first pullback C retraced is the move's rhythm. Each time a new high forms, carry the same proportion up with percentage lines; that line is the rhythm line.
In one sentence
The proportion of AB that the first pullback C retraced is the move's rhythm. Each time a new high forms, carry the same proportion up with percentage lines; that line is the rhythm line.
From point to line, from line to level
A rhythm line has three layers. This lesson covers how to draw it; Lesson 12 covers the other two.
| Layer | Meaning |
|---|---|
| Point → line | The rhythm line comes from a valid point |
| Line → level | The rhythm line marks a resistance level |
| Reached or not | Whether price reaches the line decides direction |
How to draw it (uptrend)
- Start with ABCD where D touched 1.382, so C is a valid point.
- Work out what proportion of AB C retraced, say 38.2%. That proportion is the basis of the rhythm.
- Anchor percentage lines from the start of the move to the latest high (D). The line at the same proportion is the current rhythm line.
- When price makes a new high, re-anchor the percentage lines to the new high (shift them), and the rhythm line moves up with it.
A downtrend works the same way with lows instead of highs.
The drawing method follows Lin's in-class demonstration. For the platform steps, watch this lesson's video and see the tool setup in Lesson 6.
An analogy
The length of someone's stride. However far the first step went, the following steps will be roughly the same. The rhythm line marks where each later step lands, using the first stride. The day the stride suddenly gets longer (the pullback proportion changes), the rhythm has changed; Lesson 23 calls that traction.
Every valid point has a rhythm line
A push produces many valid points, and each one has its own rhythm line. When trading, watch only the two nearest valid points and their rhythm lines (Lesson 16).
The most common mistakes
- Drawing a rhythm line without a valid point. A point without 1.382 only gives a strength line.
- Not shifting after a new high. The rhythm line has to follow new highs.
- Picking the wrong proportion. It is the proportion C retraced of AB, not any level you like.
Explain it in your own words
- What is the basis for a rhythm line's proportion?
- After a new high, what do you do with the rhythm line?
- What do "point to line, line to level, reached or not" each mean?
Practice
On the gold daily chart, find an uptrend, confirm its valid point C, work out the proportion it retraced, draw the rhythm line and shift it with every new high. Screenshot and label each shifted position.
Previous: Lesson 10 | Strength lines: when 1.382 was missed Next: Lesson 12 | Three jobs of a rhythm line
This course teaches a method using past price action as examples. It does not forecast prices, recommend any broker or give investment advice.
Lesson quiz
Get 2 right to unlock the next lesson.
1. Where does a rhythm line's proportion come from?
2. Price makes a new high. What happens to the rhythm line?
3. Can a point without a 1.382 touch give a rhythm line?
I don't predict. I prepare. Every trade I share here is placed with real money, in real time. No indicators, no noise — just price action and experience.
— Happy trading, Lin
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