16. Enter @ Down / Up Trend Lines


 

This is similar to a support and resistance pattern but on a market angle.

There are 2 ways to trade the trend lines: 

  1. Buy or Sell against the angle as it's moving up. In other words, if the market is moving up, you can place orders at or close the line to buy and vice versa for markets moving down. 
  2. When the market breaks the up trend line, you can sell the market if it holds and vice versa for the down trend line. 

It's easy to draw these lines on your charts. We typically just take a general high or low and draw the lines from low to low, Sometimes, prices may go through the line as you are drawing these trend lines but just ignore those price moves.


Past performance is not necessarily indicative of future results.





Next -> Momentum Models

17. Smooth Chart Entry / Exit



Futures, Options on Futures and Forex trading involves a substantial degree of risk of loss and is not suitable for all individuals. An investor could lose the entire investment or, in some cases, more than the initial investment. Past performance is not necessarily indicative of future results.