Basic rules for trading according to the Trendline Trading Strategy
RULES 1. Always trade with trend, because Trend is your FRIEND.
2. Find trendline that has at least 2 touches.
3. Clear breakout of structure Chart 3. shows clear breakout of the zone Mostly you should rely on Volumes, that has to increase a lot. Moreover body part of the candlestick should close on the other side of a line.
4. High confluence areas Chart 4. explains that there should be a zone that all type of traders can open their trade and it is suitable for each of them. 1) MA traders 2) S&R traders 3) Pattern traders 4) Price action traders 5) Confluence traders
5. Wait for the Intermediate trend Breakout After huge impulse price goes to retest the level mostly. At this stage any formations can be formed here (trendline on smaller frame, flag, wedge and etc.)
6. Candlestick confirmation 1) List of Bull candles 2) List of Bear candles You should pay attention on a type of candlestick and what kind of movement does it signal.
7. Multi Timeframe observation
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