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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