How to use the trend line
In predicting the forex market.
By definition, a trendline is a line connecting two or more lows or two or more highs, with the lines projected out into the future. Ideally, traders look at these extended lines and trade on prices reacting around them, either trading a bounce of the trendline.
I have trading in the forex market for a while now and the use of the trend line along other indicators has really been of good help.
Other indicators include (which I'll be talking about in my next posts) alligators, Elliott waves,oscillator and more indicators.
a from the example above you can see the two trend lines 1 and 2 +the straight white lines)
When trying to place the lines you have to look for a point where there is a visible trend l.
Then placing the line in the write poaition. The trend line allows you to know when and where you will enter or leave the market for instance when you enter the market at 1.37705 you can be able to gain pips all over until 1.44380 this is all by the help of the line.
When to enter the market.
After carefully knowing where the trend line fits and watching the market how it behaves.
When the market is on you side now that is the right moment to enter the market.
When to exit the market
Once the market breaks out your trend line at the point and be sure to put the T.P
That's the time to exit the market with those extra pips.
When the market starts moving against your line after you had predicted and entered the market that's the time to get out and think otherwise.
The tp and SL.
Placing both the tp and sl is very important when trading always look at the best places to place both of them.