Forex Strategies How To Draw Accurate Trend Lines In Forex.

[moonchild]

Most novice traders have don't know how to draw accurate lines which ends up giving them false signals, this in turns blow up their trading account.

There are two kind of trendlines in forex Te uptrend and downtrend lines, these lines are drawn to help us understand where the market is heading too and also give us a correct signals which helps in making informed decisions.

To draw an uptrend trendline, open your trading software and locate the object icon, choose the line icon, this really depends on the kind of device you're using, either PC or mobile phone.

Look at your chart and notice when the trend is going up, then draw line from the bottom of the move and make sure the line has at least three touches

Downtrend also is the same thing but quite the opposite, you'll look at when the market is going down then draw your trend line from the top and make sure it has three touches

That's how you draw an accurate trend line.

The signal with this strategy is to allow the trend to come back to the line then you buy or sell, and make sure you activate your risk management so that when you lose you have something to fall back on.

 

[Kingstone]

Trendlines are part of the tools used in forex, crypto, or binary trading. These lines are very important in determining when to place a buy or sell trade. Although it is not drawn by all, I used it sometimes to know when the market has reversed or is testing a particular support or resistance level. These levels are crucial in trading and any trendline that meets the support or resistance level should be considered a good signal and an entry point and also an exit point.

How to easily draw it?
Match the lowest lows and higher highs of the previous candlesticks and see the direction of the market before you enter into a position

 

[Victorial]

I find it hard to draw trendlines more than using the indicators. I don't know how it works. I just used it anyhow on my chart. What I use often are the candlesticks patterns and the moving averages. There are so many candlesticks patterns but you just have to study the reversals and their places of occurrence.

With what I have read now, I think I can use trend lines a little. Some candles actually have lower lows and higher highs and they keep forming a pattern. When a trader sees this, it can actually be a good entry point and an exit point. Stoll, anything is possible in forex

 

[moonchild]

@Victorial it's true, trend lines can be hard to draw, especially in lower time frames but trust me it's very easy to grasp.

First of all you need to go to a higher time frame, let's say 4hour or daily and try to understand the direction of the trend, whether uptrend or downtrend or it's just consolidation.

If it's going up, put your trendline from the bottom and make sure it touches the wick of the candles at least two touches that's all.

If it's going down, put your trendlinr at the top and draw your trend line downwards make sure it's touching at least three wicks.

You can also learn it on YouTube

 

[btaliat]

I have been learning how to do this for long. I am now practicing it on trade view

 

[Sotherefore]

It is important ,A lot of cryptocurrency traders and forex traders are using this to predict when to exit the market and also went to enter.
in cryptocurrency trading it is support and resistance but I don't really know much about how they call it in forex trading. The function of these lines can never be underestimated because even the top traders are using it to know when to enter the market and went exit, you may not really know how to do this on your own. you have to learn how to draw it perfectly to get an accurate result ..

 

[Dita Walczak]

If accuracy is missing during drawing trend lines, the accurate forecast will be hampered. Right detection of support and resistance level is needed to draw trend lines correctly. Eurotrader allows traders with a reliable trading platform, all technical tools and narrow trading spread.