TREND-LINES   Leave a comment

Market price swings in 3 sides: up/down/side-ways. It is a very simple and most effective tool to find trade market place, so make TREND UR FRIEND.

They are Primary, Secondary, Minor lines (U or W,M,N, V Shape etc). So, Swing is very important for Swing Traders, easily noticeable to develop a predictable trendline and test its validity, along with DOW’s theory to make Profit.

trend_line

Candlesticks test strength validity of Trend line by 3 Secondary swing called STABILITY TEST OF MARKET CONTINUITY (STMC).

As a general rule, Candlesticks respects with a bounce on Trendline, then, STMC confirms market reversal. Like anything, however, trendlines invalids STMC eventually and change market trend majorly. Then, Support becomes Resistance or vice-versa. Sometimes, False Breakout or THURST may confuse u.

FXTIMES-ARJUN-TL DOWN FXtimes-arjun TL UP

LESSON : Trading Points: Buy at Bullish Trend, Sell Bearish Trend (ensure your other indicators also favors your decision).

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Posted April 9, 2015 by arjunlimbu

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