Resources for Forex Trading
FOREX TRENDS LINES
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Breakout, Retest, Continuation:
Upon a breakout of a trend-line, the price will tend to pull back toward the line to retest it as a new support zone as displayed below. Vice verse for a descending channel break. Its handy to draw a thin strip across the new high and await a clear continuation before executing the trade. (To be more conservative)
Counter trend-line application:
Counter trend-lines (C.T.L's) are highly important., when placed accurately they can provide brilliant trade setups for trend trading. Counter trend-lines shall be placed on the H4 chart + H2 chart once the key levels and overall trend-lines have been placed on any specified currency pair. They are known as 'counter' trend-lines as they are pulled from low to high on a bearish pullback and high to low at a high to low on a bullish pullback. For instance; as soon as the C.T.L is broken (alongside the M.A crossover) and a fully formed & closed candlestick has been formed above/below the C.T.L we execute a trade in the trend direction. Most of the time we anticipate a new low/new high to be formed upon a C.T.L break. An example is shown below .
