There are three points could move directions: up and down on
both sides. The upward trend is defined as containing more high prices rise and
more low prices rise. Similarly, the downward trend is defined as containing
more high prices decline and the lowest low prices. When the trend moves on
both sides, said that the price in the range.
Trendlines
trendliness Is created by drawing lines that reach the
highest price support levels, as well as lower prices decline or resistance
levels, so as we explain the high and low prices are used to determine support
and resistance.
By connecting the highest price and extending the line,
traders can get an idea about where it is likely to be resistance in the future,
it can estimate future levels of support by connecting the previous low prices.
And as long as it continued to be bound by these levels, we
can trade within a range. This is subject to the condition that we remain aware
of the levels of support and resistance that may be present within the range.
Lines become same trendliness support and resistance levels additional.
When the price support and resistance levels specified by
the trend line, we are looking for to do trading in the same direction as the
overtaking. Even so, it is because 81% of all abuses are false excesses, there
is a need to be cautious and to take an additional step is required to confirm
it.
Note:
When the price drops below the trend line has been working
as a support level, it will usually return again to test the same level again -
which is at this time the level of resistance. The best short entries not be
done with the initial overtaking, but in the second to move downward, following
the "re-test" of the level in question.
Successful retest know as body candle closes outside that
level, sometimes we can notice that the price exceeded below support, and
failed to re-test the first as a resistance level, and then continued success
in the second attempt. This pattern is known also as the "kiss goodbye.
The same scenario can be reversed when the price breaks
above the trend line had previously worked as a resistance level. In this case,
look for the same trend line, which will be tested as support before entering
into a long position.
System exceeded the trend line
A simpler trading systems simply can form through the use of
trendlines. On the upside, we deliver lower levels candles objects. If we in
the center long before, we are looking for out of trading once exceeded price
in a downward direction. If we currently absent from a particular trading, they
think about entering into a short position at this point.
the same thing when we in the downward
trend we deliver higher levels candles objects. If we were in a short position
before, we are looking for out of trading once exceeded in the direction of
price rise. If we did not have entered a trading after, they think about
entering into a long position at this point.
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