to demonstrate how to trade corrections in the content of trendlines, we will use a channel for our example. Draw a trend -line so that 3 points of resistance or support was touched. You could go short the AUD/USD after the green entry arrow marked on the chart. As you can see in the chart above on the 15-minute time frame, the macd lines were crossed. There are two types of trendline: Bearish Trendlines Bullish Trendlines When you draw a trendline you should take into consideration: The candle body bottoms and the lower candlewicks for bullish trends The candle body tops and the upper candlewicks for bearish trends Remember these three.
As you can see in the example below, the target was hit with a gain of 72 pips! We also have training. Since this strategy focuses on trends, a trend line will be drawn on the support or resistance lines of the trend. Step Three: Trend Line Trading Identify a point of entry Here is a list of the entry criteria: These 4 things must happen to enter a trade with this Trend Breaker Strategy. So looking at our example above the criteria was met to go to step three because the SMA and EMA crossed and the macd lines crossed. In their most basic form, an uptrend line is drawn along the bottom of easily identifiable support areas (valleys).
You will be able to use what you have learned in this book to improve the accuracy of any trading strategy. So Why Did I Formulate This. Forex Trend Line, strategy?