The forex traders must have been very friendly with the trend line name or in its trendline cool language, this is the most common form of the base of a technical analysis. Usefulness of this trendline quite a lot, including can give a sign of reversal, retracement or buying and selling. But unfortunately most traders can not take advantage of this trendline well because only think the trendline is just a mere line that is not very useful. But if you can use it correctly including tracing the trend line exactly, then the trend line that a basic technical analysis will be able to provide an accurate signal signal just like any other technical analysis.
The traders' biggest mistake in drawing this trend line is that they mostly describe the trend line according to their trading desire instead of depicting the trend line according to actual market conditions. Then how do I create a trend line correctly in accordance with actual market conditions? Check out the following reviews from us below.
THIS WAY TO MAKE A TREND LINE WITH RIGHT
How to create a trend line bulish (Up Trend)
Creating a bullish trend line starts by dragging a straight line starting at the support area or the bottom valley point of a chart movement.
How to create a bearish trend line (Down Trend)
Creating a bearish trend line is started by drawing a straight line starting from the resistance area or the highest point of a chart movement
Why is this so important? And what to do with the trend line will signal the trading signal as accurately as any other technical analysis? You'll find the answer in our next review
From dancing this line will appear two point support / resistance and tail which is a confirmation that will make a trend line become very accurate.
Consider the following picture:
From the picture above you can see how to draw an accurate trend line. You need to know if there are three types of trend lines commonly found:
The trend line is bullish (up trend) which is marked in blue
The trend line is bearish (down trend) marked in red
The sideways trend line is marked in black
If you want to see a trend in a long period of time, then all you have to do is change the time frame, where you can use the 4 hour timeframe to see the medium term trend and 1 hour down to see the short term trend. While for the long term you can use the time frame daily or weekly.
HOW SIMPLE TRADING USING TREND LINES
It is not too difficult to trade by using this trend line, after a trend line is finished you can then make an entry position at the point of support or resistance. And do not once once the entry if the trend line has been penetrated or already in a breakout condition.
If you can use this trend line correctly in accordance with the actual market conditions then you can easily know where any point of support or resistance either in the uptrend or downtrend conditions.
Up here we get a conclusion that:
In confirming a trend line takes two peaks or valleys in making a valid trend line and a third point confirming this line.
If you meet a trend line that is broken or not in the condition of a long line, then you can draw a conclusion if there is a possibility that there will be a change of trend there. The more often the trend line is lost then the possibility of change of trend will be greater.
A trend line will be very strong if it has been through various tests, where price movement can not penetrate the trend line (breakout) as shown below.
Never once depict the trend line according to your wishes, because you will never be able to describe the real market conditions because you do not meet the correct trading rules.
The traders' biggest mistake in drawing this trend line is that they mostly describe the trend line according to their trading desire instead of depicting the trend line according to actual market conditions. Then how do I create a trend line correctly in accordance with actual market conditions? Check out the following reviews from us below.
THIS WAY TO MAKE A TREND LINE WITH RIGHT
How to create a trend line bulish (Up Trend)
Creating a bullish trend line starts by dragging a straight line starting at the support area or the bottom valley point of a chart movement.
How to create a bearish trend line (Down Trend)
Creating a bearish trend line is started by drawing a straight line starting from the resistance area or the highest point of a chart movement
Why is this so important? And what to do with the trend line will signal the trading signal as accurately as any other technical analysis? You'll find the answer in our next review
From dancing this line will appear two point support / resistance and tail which is a confirmation that will make a trend line become very accurate.
Consider the following picture:
From the picture above you can see how to draw an accurate trend line. You need to know if there are three types of trend lines commonly found:
The trend line is bullish (up trend) which is marked in blue
The trend line is bearish (down trend) marked in red
The sideways trend line is marked in black
If you want to see a trend in a long period of time, then all you have to do is change the time frame, where you can use the 4 hour timeframe to see the medium term trend and 1 hour down to see the short term trend. While for the long term you can use the time frame daily or weekly.
HOW SIMPLE TRADING USING TREND LINES
It is not too difficult to trade by using this trend line, after a trend line is finished you can then make an entry position at the point of support or resistance. And do not once once the entry if the trend line has been penetrated or already in a breakout condition.
If you can use this trend line correctly in accordance with the actual market conditions then you can easily know where any point of support or resistance either in the uptrend or downtrend conditions.
Up here we get a conclusion that:
In confirming a trend line takes two peaks or valleys in making a valid trend line and a third point confirming this line.
If you meet a trend line that is broken or not in the condition of a long line, then you can draw a conclusion if there is a possibility that there will be a change of trend there. The more often the trend line is lost then the possibility of change of trend will be greater.
A trend line will be very strong if it has been through various tests, where price movement can not penetrate the trend line (breakout) as shown below.
Never once depict the trend line according to your wishes, because you will never be able to describe the real market conditions because you do not meet the correct trading rules.
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