Friday, April 3, 2009

treND lineS....

Forex Trend Line book covers rules, purposes and advantages of using trend lines in Forex charts.

Trend line is our guide that helps to identify main price direction during a certain period of time.
If placed correctly it will provide answers to

Where to enter the market?
What direction to enter: up or down?
When to exit or be prepared to exit?


To start our learning journey, at first let's take a look at the bigger picture of the market using Forex charts. To obtain this bigger market picture, traders would need to simply zoom out their charts a little bit or switch to a larger time frame.


There are several important points on a chart that help us to draw a trend line in Forex.
We call them A-B-C-D points.





So:
1. Find big enough picture to visualize current market move.
2. Look for ABCD points.
3. Draw a trend line through A and C points.
4. The more A, C and following additional points the line will touch — the more accurately it will work.

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