How Do I Use Trend Lines in Forex? - How to Use Trendlines Signals to Trade Forex
Example of How to Use Trendlines Signals to Trade Forex Up-wards Trend
Traders should use the up-wards trendline to open forex buy trades once the forex price touches the up-wards forex trend line.
How Do I Use Trendlines Signals to Trade Forex Upward Trending Market & Open Buy Trades
Example of How to Use Trendlines Signals to Trade Forex Downwards Trend
Traders should use the downward trend line to open forex sell trades once the forex price touches the down-wards forex trend line.
How Do I Use Trendlines Signals to Trade Forex Downwards Trend & Open Sell Trades
How to Use Trendlines Signals to Trade Forex
The trend is your best friend. Is a popular saying among traders because you never should go against the forex trend when trading forex. This is the most reliable forex strategy used to trade Forex because once prices start to move in one direction they can move in that particular direction for quite some time within the trend - therefore using this trend technique presents opportunity to make profits from the forex market.
To identify a trend traders commonly use the trendlines. Trend lines are provided on the MT4 charts & traders can use these trendline drawing tools on the MT4 software to draw trend lines on charts.
Traders then can analyze the forex trend movements on the forex charts using these trend lines.
Principles of How to Draw Forex Trend Lines on Charts
Use forex candle charts to draw trend lines
- The chart points used to draw the trendlines - upwards forex trendlines are along the lows of the price bars in a bullish forex market. An upwards bullish forex trend is defined by higher highs & higher lows of the forex price.
- The chart points used to draw the trendline - downwards forex trendlines are along the highs of the price bars in a bearish forex market. A down-wards bearish forex trend is defined by lower highs & lower lows of the forex price.
- The chart points used to draw the trendlines are extremes points - the high or the low price. These extreme price areas are critical because a price close beyond the extremes tells forex traders the forex trend of the currency pair might be changing. This is an entry or an exit forex signal.
- The more often a trendline is touched by price but it's not broken, the more powerful its forex trend signal.
