As we know in #forex price never moves in straight line , price action is full of market noise and impulsive moves , this is where most of #technical #indicators fail in lower time frames where as drawing a #trendline in different time frames can help in understanding short /long term price direction thus helping in filtering out noise .
Below examples can also help to understand better how you can benefit from our #forex #technical analysis from premium trade ideas & how you can reach higher average pips per set-up rather than targeting only tp1.
Now let us look at live example from one of our trade ideas & how trendline helps in trading :
Trade Set-up 1 :
In most of our trades we provide supporting trendline which is supposed to be used as stop loss , we expect this #trendline to support price direction and if price is closed below the #trendline we expect current short term direction of price changing and we exit trade looking for another entry.
In below example you can see that after publishing trade set-up price started falling with one long red candle which must have created doubt & panic in many long traders and emotions must have taken control resulting many traders closing positions ,
We at No Emotion Fx encourage our #forex #traders to trust on #trendlines to filter market noise , which also helped in this case , and price continued to move on with support of our #trendline towards our target price zone, and till price is well supported by #trendline we will be staying to get most out of this trade.
Trading Set-up 2 :
As always you can see blue trendline below price supporting pair upside movement and its obvious for our premium channel subscriber that we need to stay in trade till trendline is valid.
Below you can see price moved up , retraced little before continuing towards our target price & price being above our trendline gave us confidence to wait for tp3 .
Key Takeaways :-
Use Trendlines to decide whether to exit trade or wait for higher targets .
Price coming back to retest trendline and bouncing back provides more buy/sell entry opportunities.
If price closes below trendline in 4hr close trade without waiting , hoping that price may turn around is just hoping and not trading , follow rules & trade without emotions.
Always remember that what matters is your performance over months not individual trades , there will always be loosing days or weeks, stick to plan & trust #trendlines
In next Blog we will be talking about how #Trendline trading can save you from violent market movements and save losses , stay with us till then.
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