What are the drills of using trend lines ?
Buy or sell when trend line is broken up or down.
Wait for pullback for confirmation.
Use Support and resistance lines as guide for targets.
A few simple rules but it needs to be drill again and again and again .......
Before you want to "divorce" from using trend lines, the least you could do is to give it a good 6 months exclusive "stay-in-together". That means, use only trend lines and nothing else, no volume, no RSI, no MACD, nothing. Just trend lines.
You can use a dummy or live account to test it out for 6 months, charting your own progress and see how you fare. It is good to use the same position size and ideally a few instruments so you can see a clearer pattern.
Once you are convinced that your results have improved to your liking, then stick this rules to your PC. Read out aloud what you need to do before you click the first button. Hear your own voice giving you the instructions like -
1. Has the price broken out of the trend line ? Yes - proceed to
2. Has the price establish a pullback ? Yes - proceed to
3. where is the support or resistance level ? Established - proceed to
4. Calculate the risk/reward ratio - worthwhile ? Yes - proceed to
5. Take the trade
6. Monitor the chart pattern
7. Profit or loss - record the results
8. Rinse and repeat
For now, I will wait for SPX500 to hit 2400 and see if the price action breaks out of the bearish trend line. If it does, I will wait for a pullback to ascertain if it is a bullish sign to buy.
Then Q3-7 will follow.
After a while, every chart that you come in contact with - you will treat it the same manner. Much like a doctor asking the patient the same questions again and again - how long have you had the fever ? what other symptoms ? His diagnostics questions are the same so that he knows which drugs to dispense.
Once it falls out of the scope of his experience, he quickly refers to the next level, ie. refer patient to specialist or go to the hospital. He does not attempt to treat it on his own.
Buy or sell when trend line is broken up or down.
Wait for pullback for confirmation.
Use Support and resistance lines as guide for targets.
A few simple rules but it needs to be drill again and again and again .......
Before you want to "divorce" from using trend lines, the least you could do is to give it a good 6 months exclusive "stay-in-together". That means, use only trend lines and nothing else, no volume, no RSI, no MACD, nothing. Just trend lines.
You can use a dummy or live account to test it out for 6 months, charting your own progress and see how you fare. It is good to use the same position size and ideally a few instruments so you can see a clearer pattern.
Once you are convinced that your results have improved to your liking, then stick this rules to your PC. Read out aloud what you need to do before you click the first button. Hear your own voice giving you the instructions like -
1. Has the price broken out of the trend line ? Yes - proceed to
2. Has the price establish a pullback ? Yes - proceed to
3. where is the support or resistance level ? Established - proceed to
4. Calculate the risk/reward ratio - worthwhile ? Yes - proceed to
5. Take the trade
6. Monitor the chart pattern
7. Profit or loss - record the results
8. Rinse and repeat
For now, I will wait for SPX500 to hit 2400 and see if the price action breaks out of the bearish trend line. If it does, I will wait for a pullback to ascertain if it is a bullish sign to buy.
Then Q3-7 will follow.
After a while, every chart that you come in contact with - you will treat it the same manner. Much like a doctor asking the patient the same questions again and again - how long have you had the fever ? what other symptoms ? His diagnostics questions are the same so that he knows which drugs to dispense.
Once it falls out of the scope of his experience, he quickly refers to the next level, ie. refer patient to specialist or go to the hospital. He does not attempt to treat it on his own.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.