What You Gain From Giving Lines In The Market
Forex traders must have been very friendly with the trend line or in the cool language of the trendline, this is the most common form of basic technical analysis. The usefulness of this trendline is quite a lot, including it can give signs of reversal, retracement or buying and selling. But unfortunately most traders are not able to take advantage of this trendline properly because they only think the trendline is just a mere line that is not very useful. However, if you can use it correctly, including drawing the right trend line, then the trend line, which is the basis of technical analysis, will be able to provide accurate signals just like any other technical analysis.
The biggest mistake traders make in drawing trendlines is that they mostly draw trendlines according to their trading preferences instead of drawing trendlines according to actual market conditions. Then how to make a trend line correctly according to actual market conditions? Check out the following reviews from us below.
How to make a bullish trend line (Up Trend)
Creating a bullish trend line begins by drawing a straight line starting from the support area or the lowest valley point of a chart movement.
How to make a bearish trend line (Down Trend)
Making this bearish trend line starts by drawing a straight line starting from the resistance area or the highest point of a chart movement
From drawing this line will appear two points of support / resistance and a tail which is a confirmation that will make a trend line very accurate.
It is not too difficult to trade using this trend line, after you have created a trend line, the trader can enter a position at the support or resistance point. And never enter once if the trend line has been broken or is already in a breakout condition. If traders can use this trend line correctly according to actual market conditions, traders can easily find out where the support or resistance points are, whether it's in an uptrend or downtrend.
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