FOREX TRENDS LINES

Page 10

Rules to trading the sell zone:

  • 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.

  • Find the uptrend line break and the bearish candle in the sell zone.

  • 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.

  • Establish the last high in order to determine where your protective stop loss will be placed.

  • Find the outer uptrend line as well as support to determine where the market may go for profit taking.

  • Figure out the latest A,B,C,D's and find the D extension.

  • Stop loss shall be placed 15-30 PIPs above the 3rd bounce candlestick reversal.

Rules to trading the buy zone:

  • 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.

  • Find the downtrend line break and the bullish candle in the buy zone.

  • 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.

  • Establish the last low in order to determine where your protective stop loss will be placed;.

  • Find the outer downtrend line as well as resistance to determine where the market may go for profit taking.

  • Figure out the lat est A,B,C,D's and find the D extension.

  • Stop loss shall be placed 15-30 PIPs below the 3rd bounce candlestick reversal.