how to draw a trendline?
It is now time for knowing how to put important points on your forex chart.
The support and resistance lines (points) can be seen in the chart when the price in most cases retraces. It can go up and down. Like bouncing ball. But when the price of the currency crosses that points it will go very fast. So it is very good idea to set Stop Loss there or +- 20-30 points below or above that point.
The support and resistance lines (points) can be seen in the chart when the price in most cases retraces. It can go up and down. Like bouncing ball. But when the price of the currency crosses that points it will go very fast. So it is very good idea to set Stop Loss there or +- 20-30 points below or above that point.
As you can see there are a lot of points that you can set up for your take profit or stop loss. You can see now that USDJPY now is on the "channel" between 115.29 and 121.21. We can set up now stop loss at thease points for buying or selling points. In the "lower" timeframes you can also draw thease points but the lower timeframes the importance is less. If you will draw trendline in 15 min chart there is a small probability that this point is important. Daily charts is a good timeframe.
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Heres a basic introduction website that may interest you. Software for predicting turns in the currency market.
www.alexcarrington.pwp.blueyonder.co.uk
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