Trend trend line
Now before I dive into specific Trend Line strategies and techniques, you must first learn how to draw a Trend Line correctly.
And which to ignore? An example: Because a Trend Line can also alert you when market conditions are changing. By paying attention to the steepness of the Trend Line.
For example: If your Trend Line is getting flatter, it means the market is moving into a range condition. And if your Trend Line is getting steeper, it means the trend is becoming stronger or possibly trend trend line into a buying climax.
Is this important? Heck yes! Because if you know market conditions are changing, you can adjust your trading strategy accordingly.
Next… Trend Line Trading: How to better time your entries If you want to find good trading opportunities, then you must trade near the Trend Line. But if the pullback is shallow and you enter your trades too late, you risk missing the move. Introducing The Trend Line Breakout technique.
Does it make sense? And in such cases, you want to trail your stop loss on the current market swing and exit the trade if the price closes below it.
So the question is… How do you identify a trend reversal to the upside? If it does, the market is likely to reverse in the opposite direction.
Now over to you… How do you use Trend Line in your trading? Leave a comment below and share your thoughts with me.
They are used to give indications as to the immediate trend and indicate when a trend has changed.