How To Use Trendlines In Forex Trading

Only one of two things can happen when a price approaches support or resistance: the price can break through it, or it can bounce off and reverse direction. The same is of course true for trend lines.

1. Trading on a Pullback
If a chart is trending in a clear direction, and a trend line can be drawn connecting a series of relative highs or relative lows, trading opportunities exist when the price approaches the trend line. If the price bounces off the trend line and resumes the trend in the original direction, this can be an excellent opportunity to enter the market in the direction of the dominant trend. This is often referred to as buying on a pullback in an up trend or selling into strength in a downtrend.

Buying on a bounce off such a support line can be done through a limit order just above the support.

2. Trading a Break of the Trend
The second possible trade is the break of the trend line, which can be traded just as any other broken support or resistance line. If a candle closes through a trend line to the downside, as in the example below, the proper entry point would be to sell once the...Read more

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 Top 28 Forex Training Video- Free

1. What Is Forex?  2.Forex Market Facts  3.What Is Leverage?  4.Currency Pairs Explained  

5. Pips In The Forex Market  6. The Essentials of Margin In Forex  7.Forex Glossary

8.Fundamental Analysis  9. Interest Rates  10. Gross Domestic Product  11.Non Farm Payrolls

12. Stop Loss & Take Profit  13. How Much Risk Should You Take? 14. Support and Resistance

15. Trend Lines 16.Channels 17. Reversal Pattern 18.Double Tops  19. Double Bottoms

20. Triples  21. Head & Shoulders 22. Saucers 23. Continuation Pattern 24. Triangles

25. Ascending & Descending Triangles  26. Rectangles  27. Basic Candle Shapes & Names

28. Trend Changing Candle Arrangements