Rot your line: how to make money on the trend

Rot your line: how to make money on the trend

Rot your line: how to make money on the trend

What is a trend? Every novice trader has heard this word at least once. In this article, you will learn all the secrets of the most basic method of technical analysis, which will increase the number of your successful trades, and therefore bring you more profit.

The main rule that those who are just getting acquainted with the Forex market are guided by is as follows: "Don't trade against the trend!» And there are reasons for this. Imagine that you are participating in a road bike race. You are in the midst of the movement itself. Around – the same as you, cyclists, greedy for victory. You are pinned down by the limits of movement – neither to the left nor to the right. Now imagine what awaits an athlete who abruptly decides to change the trajectory of his movement and turn to the side. He will be crushed faster than he says the word "finish". The same consequences await the trader who trades against the trend – the market eats them at once and moves on like an armored train.

Therefore, it is very important to work in the direction of the trend movement of the currency pair and enter into transactions from corrections. By following the trend, you increase the chance of a successful trade and reduce the stress of your work, as The trade itself will be more relaxed. Do you want to learn it in just an hour? Then watch this video!
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18.05.2017 Author: Alexander Borskikh
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Article For beginners Graphical analysis Forex Levels

Rot your line: how to make money on the trend

What is a trend? Every novice trader has heard this word at least once. In this article, you will learn all the secrets of the most basic method of technical analysis, which will increase the number of your successful trades, and therefore bring you more profit.

The main rule that those who are just getting acquainted with the Forex market are guided by is as follows: "Don't trade against the trend!» And there are reasons for this. Imagine that you are participating in a road bike race. You are in the midst of the movement itself. Around – the same as you, cyclists, greedy for victory. You are pinned down by the limits of movement – neither to the left nor to the right. Now imagine what awaits an athlete who abruptly decides to change the trajectory of his movement and turn to the side. He will be crushed faster than he says the word "finish". The same consequences await the trader who trades against the trend – the market eats them at once and moves on like an armored train.

Therefore, it is very important to work in the direction of the trend movement of the currency pair and enter into transactions from corrections. By following the trend, you increase the chance of a successful trade and reduce the stress of your work, as The trade itself will be more relaxed. Do you want to learn it in just an hour? Then watch this video!

What does it take to correctly determine the direction of the trend? Only one thing – the ability to correctly build trend lines. Born in the early twentieth century, the method of market analysis along sloping trend lines has not lost its relevance today.

So what is a trend line? This is one of the oldest and most famous technical analysis tools that is used to determine the General direction of the financial market, as well as to detect sideways price movements and market reversals.

A correctly constructed trend line will indicate the further direction of the market movement. However, most traders make the simplest mistakes in the construction itself, which affects the results of trading. We will look at these errors in our article.

Using incorrect reference points for building trend lines:
So how do I build trend lines correctly? On the course "Sniper" you will find a whole lesson devoted to the rule of building trend lines and determining the current trend. After it, You will confidently determine the moment of changing trends and will only trade in the direction of the directed market movement.

Before you learn the basic rules for building trend lines, you need to know where and how to build them in the trading terminal. Before this you need to set the size of the magnet in paragraphs and add a graphic trend line with further settings on the toolbar:

The trend line should be based only on the grounds (strictly for shadows or lows troughs) with a mandatory break out of their common maximum for an uptrend market:
For a downtrend market, the trend line should be drawn only on the tops (strictly on the shadows) with a mandatory breakdown at the price of their common lows, located between the two peaks:
How do you quickly find these peaks and troughs? It's simple: to do this, you need to find price curves. What they look like:
A correctly constructed trend line shows us the direction and at the same time support or resistance, from which the price often bounces.
It is at such moments that highly probable reversal patterns arise, whether it is the "Sniper" or "risk-free Forex" strategy, where such models are used to make a profit.

Not every novice trader can immediately build graphical elements of technical analysis correctly. Do not worry: a little practice – and You will learn to do it as well as professionals.

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