FOREX TRENDS LINES
Page 10
Rules to trading the sell zone:
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Find and draw all trend-lines. Inner, outer and long-term as this will help you to determine if the market is in an uptrend, downtrend or if a trend line has been broken signifying the potential end of a trend and reversal.
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Find the uptrend line break and the bearish candle in the sell zone.
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Find the back side of the uptrend line (resistance) to see if it is lower than the last high, giving you a high probability trade setup.
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Establish the last high in order to determine where your protective stop loss will be placed.
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Find the outer uptrend line as well as support to determine where the market may go for profit taking.
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Figure out the latest A,B,C,D's and find the D extension.
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Stop loss shall be placed 15-30 PIPs above the 3rd bounce candlestick reversal.
Rules to trading the buy zone:
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Find and draw all trend-lines- Inner, outer and long-term as this will help you to determine if the market is in an uptrend, downtrend or if a trend line has been broken signifying the potential end of a trend and reversal.
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Find the downtrend line break and the bullish candle in the buy zone.
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Find the back side of the downtrend line (support) to see if it is higher than the last low, giving you a high probability rade setup.
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Establish the last low in order to determine where your protective stop loss will be placed;.
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Find the outer downtrend line as well as resistance to determine where the market may go for profit taking.
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Figure out the lat est A,B,C,D's and find the D extension.
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Stop loss shall be placed 15-30 PIPs below the 3rd bounce candlestick reversal.