Trendline Strategy in Forex Trading

[moonchild]

Trendline in Forex are those lines that are used to connect between highs and lows which represents a support and resistance.

To draw a trendline is very easy even though some beginners bomb it and they keep on getting wrong signals.

The best way to draw a trendline is but starting from the left side of your charts and also understanding the market structure and then use your trendline tool and then connects all of the highs and make sure you have atleast three touches before you can call it a valid trendline.

After you draw your trendline the next thing that you should do is to wait for another touch the moment you see another touch you can then decide to enter or you wait till you see a retest what retest means In a nutshell is, after price touches a trendline it will reverse and then sometimes it will comeback and retest that trendline before it shoots up depending on the direction of the trend.

So, when you notice another touch on your trendline you can then enter the trend and make sure your stop loss is on top of a trendline or below depending on the market structure.

 

[Ivo Zetticci]

Drawing trendline on the trading platform will give you trend-specific ideas. Majority of the traders can’t do this job perfectly. Eurotrader makes no delay in sending back withdrawn profit into account. They also offer big deposit bonus to traders.

 

[selena1]

It's also important to note that trendlines can be used to identify potential areas of price reversal or continuation. If a trendline is broken, it could signal a potential reversal in the trend or a breakout to the upside or downside, depending on the direction of the break.
Another technique that can be used with trendlines is to draw parallel lines, known as channels, to further identify potential areas of support and resistance. These channels can be used to determine potential entry and exit points in a trade.
Overall, trendlines are a valuable tool in forex trading that can help traders identify potential areas of support and resistance, as well as potential areas of price reversal or continuation. When used correctly, they can assist in making informed trading decisions and managing risk.

 

[Jack Reacher]

Trend lines will help a trader catch the exact market trend. The better we draw trend lines, the better we can forecast the market. On the platform of Eurotrader broker, you will find all technical tools available with other necessary supports.