Using Trendline for Trade

[ghous]

good info....how about the if the price break the trendline...do u trade the breakout or wait for retracment? thanks
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no you can quite easily trade the breakouts, they can be very profitable but you need to have some experience to know when the currency pair will start to retrace because that will happen sooner or later...in some cases the breakout may consist of a few pips and sometimes it can move as much as 200 pips in a few candles...

[kashifrasool]

Well we can not achieve 100% profit using trend lines but it is still good to use and get some % of profit and save some money using trend lines. Well trend lines might be drawn after observing past movements and we have to draw for future.

[ghous]

kashif there are many traders out there who tarde with "only" the trend lines, and i mysel use them a lot! there are absolutely womderful! the only thing you need o take into account is that they are more valid on higher TF's but they can be good even with the shorter TF's but tend to have a shorter life...

[knoppixgold]

trendline is good for guide us to see the overall trend.....the entry is different story...some trader use moving average as a dynamic trendline...and its also works.

[redace]

Drawing trendlines is a highly subjective matter. Thus there is no strict rules of drawing trendlines. An effective way is to draw trendlines around support/resistance.

[ghous]

Drawing trendlines is a highly subjective matter. Thus there is no strict rules of drawing trendlines. An effective way is to draw trendlines around support/resistance.

that's the only way and reason of drawing trendlines, and the reason that it is not an exact science is because these sup/res areas are areas and not "lines" but to make things simpler we define that area with a line segment. and that is why price does'nt always find sup/res "at" the trendline, it may find sup/res above or below it provided that the sup/res is close to the trendl;ine.

[knoppixgold]

if we could see ...higher high and higher low....its indicate UT then we draw trendline for UT if we could see lower low and lower high its indicate DT then draw trendline for DT. simple as that......trendline is just to predict the trend not for entry. entry at S/R and CS formation such as morning star or engulfing etc. this is price action matter

[knoppixgold]

something interesting about trendline ...from rob booker

[john.baem]

guys, trendline is the safest approach in doing breakout strategy, i dont wanna teach u how but if you can digest that deeply, its really a safe approach by doing trendline and here you can determine your ratio for every position but kindly avoid doing breakout style when its near the news time.. You may safe if you have a great equity..

[neo_moon1]

well, to fully enjoy the use of trend line you should always start making trend lines from 1 week ,1 day, 4 hr, 1 hr , 30 min on a single chart. by this u will have a clear picture of the market move. then u can work out where the market is goin and do the analysis easily. but remeber always color the lines so that u can differenciate between them