Welcome! Dear Traders,you are reading my forex trading experiences. Forex trading is a very profitable and very risky business opportunity. If you are a beginner, calm down,have a cup of coffee, and convince yourself that you need to study hard to win in forex trading. Obviously, the task is not easy as the statistics claim that only 5% traders win in forex trading. If you are determined, serious,and hard working, you can surely be included in the group of winners.

HOW TO TRADE FOREX WITH TREND LINE

Forex technical analysis with trend line is one of the simple and widely used technical analysis. With the trend line you can predict the chart and can keep the trend under observation. Both trend continuation and trend reversal can be tracked with the trend line technical analysis technique. Let see how the trend line are drawn and interpreted. A long trend line is much accurate than a short trend line. Maximum touches of the a trend line also ensure the effectiveness of the trend line.
Source:metatrader4.com
Trend line on the price chart can be drawn in two ways, bullish trend line and bearish trend line. Bullish trend line is drawn to observe the bullish trend continuation and find reversal.Bullish trend line drawn by adding the highs with a straight line. When the bullish trend line is broken out, a bearish trend is signaled.  A bullish trend line contains the support levels.

A bearish trend line is drawn to observe the bearish trend continuation and find reversal.Bearish trend line drawn by adding the lows with a straight line. When the bearish trend line is broken out, a bullish trend is signaled. A bullish trend line contains the resistance levels.
Source:metatrader4.com
Trend line can be drawn on indicators window as well. Generally, the trend line are drawn on the most oscillators, trend indicators, and indicators that show oversold and overbought conditions. The break out of the trend line indicates the reversal. The trend line on indicators window also drawn by adding the highs and lows. 
Source:metatrader4.com
Dear traders, trend lines on price chart and indicator window can be compared to find the price reversal. It also ensures the accuracy of the reversal.

1 comment :

  1. Nice blog... Forex trading with trading lines are not easy, but here I found a way to trade with forex trading lines. Thanks for sharing

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