How to draw a proper trendline in the chart | Forex Tutorials And Technical Analysis
First you need to identify the top, higher top, lower top, bottom, higher bottom, lower bottom in the chart. Means you need to understand the high --> higher high and low --> lower low etc.
Lets see an example of XAUUSD (Gold) currency pair with 15 minute time frame.
Most of the time the probability of creating top(s) or bottom(s) is 3 times. In case of down trend 1st top is created (i.e. higher high/higher top) then 2nd lower top is created (i.e. lower high/lower top) and finally then 3rd lower top is going to create (i.e. lower high/lower top) but here in the picture 3rd lower top is not created and crossed the trend line means trend is being changed. Here you can think for a entry for a new trade or exit for an existing trade.
Remember, 3rd time top or bottom creation in same trend line or in a same support line or in a same resistance line is very much important to change the trend of the market.
For stop loss (SL) or Trailing Stop loss, you can always use 25 to 50 Moving Average. You should always use a proper stop loss (SL) and a take profit (TP) to take a trade.
Generally trend two types. One is UP TREND and another is DOWN TREND. Another type is there i.e. when a trend is not in up trend and not in down trend then is is called a consolidation stage.
Before doing a trade first know the trend of a particular script (Currency Pair) by drawing a proper trend line in the chart. Then wait for signal area and then wait for confirmation.
If you have any question or query regarding this then feel free to comment. We hope is is an informative for you. Thanks.
Lets see an example of XAUUSD (Gold) currency pair with 15 minute time frame.
Most of the time the probability of creating top(s) or bottom(s) is 3 times. In case of down trend 1st top is created (i.e. higher high/higher top) then 2nd lower top is created (i.e. lower high/lower top) and finally then 3rd lower top is going to create (i.e. lower high/lower top) but here in the picture 3rd lower top is not created and crossed the trend line means trend is being changed. Here you can think for a entry for a new trade or exit for an existing trade.
Remember, 3rd time top or bottom creation in same trend line or in a same support line or in a same resistance line is very much important to change the trend of the market.
For stop loss (SL) or Trailing Stop loss, you can always use 25 to 50 Moving Average. You should always use a proper stop loss (SL) and a take profit (TP) to take a trade.
Generally trend two types. One is UP TREND and another is DOWN TREND. Another type is there i.e. when a trend is not in up trend and not in down trend then is is called a consolidation stage.
Before doing a trade first know the trend of a particular script (Currency Pair) by drawing a proper trend line in the chart. Then wait for signal area and then wait for confirmation.
If you have any question or query regarding this then feel free to comment. We hope is is an informative for you. Thanks.
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