There are a few basic rules to bear in mind when drawing trend lines:
1. Tentative trend line - A diagonal line market bounces off of twice. This trend line is indicative of a potential trend, but is not confirmed & actionable yet.
This is a tentative trend line; two points touch the line. It suggests the possibility of a trend in the making, though conventional analysis will not regarding the trend as established until there are three points on the line.
2. Confirmed trend line - The market has bounced off this trend line three times. Conventional analysis regards this as a sign that the trend line is real, and that the market will react around it.
It is easiest to trade from a trend when its highs or lows trend closely to a recognizable diagonal line, since this line may be used to predict future highs or lows. Opinions vary on whether trend lines should be drawn from the highs and lows of candles or from body of the candle, open & close prices; successful traders can be found employing either approach.
In an up trend, trend lines touched three times, this validates the trend line. Those who wish to trade with the trend may have looked for opportunities to buy based on validated trend. Price pulled back to the trend line that was previously confirmed. Traders can do a trend trade & may be a buying opportunity.
Support and Resistance
The price action trader pays particular attention to pivotal price levels, often “drawing” these lines horizontally as Support and Resistance levels. The theory behind employing these lines is that the market has a sort of memory: price behaves with respect to certain levels that have previously been significant
turning points in the historical narrative of the price’s action, and other market participants are likely
1. Tentative trend line - A diagonal line market bounces off of twice. This trend line is indicative of a potential trend, but is not confirmed & actionable yet.
This is a tentative trend line; two points touch the line. It suggests the possibility of a trend in the making, though conventional analysis will not regarding the trend as established until there are three points on the line.
2. Confirmed trend line - The market has bounced off this trend line three times. Conventional analysis regards this as a sign that the trend line is real, and that the market will react around it.
It is easiest to trade from a trend when its highs or lows trend closely to a recognizable diagonal line, since this line may be used to predict future highs or lows. Opinions vary on whether trend lines should be drawn from the highs and lows of candles or from body of the candle, open & close prices; successful traders can be found employing either approach.
In an up trend, trend lines touched three times, this validates the trend line. Those who wish to trade with the trend may have looked for opportunities to buy based on validated trend. Price pulled back to the trend line that was previously confirmed. Traders can do a trend trade & may be a buying opportunity.
Support and Resistance
The price action trader pays particular attention to pivotal price levels, often “drawing” these lines horizontally as Support and Resistance levels. The theory behind employing these lines is that the market has a sort of memory: price behaves with respect to certain levels that have previously been significant
turning points in the historical narrative of the price’s action, and other market participants are likely
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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.