April 5, 2016
The most common form of technical analysis in forex trading are probably the Trend Lines. They are also possibly one of the most underused ones.
If drawn right, they can be as correct as any other technique. Unluckily, many forex traders don’t pull them right or try to make the line fit the market, instead they do it the other way around.
In their most simple form, an uptrend line is drawn alongside the bottom of simply recognizable support areas. In a downtrend, the trend line is drawn alongside the top of easily recognizable resistance areas.
It is easy to draw forex trend lines correctly, all you have to do is find two main tops or bottoms and link them.
Types of trends lines
Uptrend (higher lows)
Downtrend (lower highs)
Sideways trends (ranging)
Things to Keep in Mind Using Trend Lines in Forex Trading
- As a minimum, it takes two tops or bottoms to draw a legal trend line, however, it takes three to approve a trend line.
- The STEEPER the trend line you pull, the less consistent it is going to be and the more possible to break.
- Just like horizontal support and resistance levels, trend lines become tougher the more times they are tried.
Remember to never draw trend lines by making them fit the market. The trend line is not a valid one if they do not fit correctly.
September 21, 2016
This November XM will be visiting two different locations in Greece with a new free seminar on swing trading. Held at Electra Palace Hotel in Thessaloniki on 4th November and at Electra Palace Athens Hotel in Athens on 5th November, the seminar will be presented by Certified Financial Technician Avramis Despotis...
September 19, 2016
XM has recently hosted two more free seminars in Northeast China on the use of swing trading techniques, which attracted numerous traders interested in learning from Tradepedia instructor Marios Pashardes...
September 8, 2016
Traders from Indonesia, Thailand and Laos have a fantastic opportunity to attend one of the FBS seminars in September. Get a chance to become a Forex professional, trade from wherever you want, and forget about all financial hurdles...