Did you know Trend Lines move over time?


If we`re basing our trading strategies on trend-line analysis. Did you know Trend Lines move over time? to answer this question. We need to be aware that price levels derived from trend lines will change depending on the slope of the trend line.  The slope of a trend line refers to the angle of a trend line relative to a horizontal line. The steeper the slope of the trend line, the more the relevant price level will change over time; the shallower the slope, the more gradually the price levels will change with time.

No matter what time we`re trading, being sure to factor in the shifting levels of trend lines, if they`re part of our trade strategy.  We may need to adjust our order levels accordingly. In particular, consider the following:

-Short-term and overnight positions:  Considering where trend-line support or resistance will be over the next 6 to 12 hours.

-Limit-entry orders:  If our limit buying/selling order is based on a sloping trend line we must periodically adjust it.

-Breakouts:  A significant trend line touching that high/low may be a catalyst for a breakout.

Trend Lines are one of the simplest yet most powerful tools that we use to trade forex online at Currency Traders Club.

Also Study,

Forex Trading Signals


Please enter your comment!
Please enter your name here