Trendline , Range & Importance of candle close price.
Hello Fellow Traders,
Here we would like to talk about Trendlines and how they can be used along with Horizontal support to find great entry points , both for short term scalping and swing trades ,
We all know about trendlines yet traders don't use it to the full potential which this tool can provide ,
In this article we will be talking about Trendline above price which defines current range of price action , for our convenience we call them Price Range trendline:
Price range trendline can be drawn above or below price and must be pointing UP in when price going up and pointing down when price is going down . But before starting we want you to understand Closing price of candle and its importance while trading with trendlines or Moving averages or with any indicator ,
In trendline trading 4HR and Daily closes are highly relevant whereas shorter time frame candle close price can just be cause of market noise and we don't give much importance to them.
Candle closing price is used to understand if trendline is still valid or has been breached/ invalidated , very important in both trendlines & horizontal support n resistance.
Now If you see the chart , you can see trendline supporting upside movement , then we have Range Trendline & Horizontal Support ,
Near Range Trendline price is mostly overstretched and looking for minor pullback/retracement , knowing price range where there is high probability we can use Limit orders to scalp pips out of pair each time price reaches our Range trendline and till 4hr candle doesn't close above Trendline ,
Success rate of Trading with Range Trendline is high because it doesnot act as resistance but probable price zone where bullish/bearish pressure has reached its peak and need some cool down ,
Check our trade idea based on same principal in shorter time frame which worked out perfectly well and let us know what do you think.
For more info and knowledge about using trendlines.... we are here to help community trade better .. message us.
Here we would like to talk about Trendlines and how they can be used along with Horizontal support to find great entry points , both for short term scalping and swing trades ,
We all know about trendlines yet traders don't use it to the full potential which this tool can provide ,
In this article we will be talking about Trendline above price which defines current range of price action , for our convenience we call them Price Range trendline:
Price range trendline can be drawn above or below price and must be pointing UP in when price going up and pointing down when price is going down . But before starting we want you to understand Closing price of candle and its importance while trading with trendlines or Moving averages or with any indicator ,
In trendline trading 4HR and Daily closes are highly relevant whereas shorter time frame candle close price can just be cause of market noise and we don't give much importance to them.
Candle closing price is used to understand if trendline is still valid or has been breached/ invalidated , very important in both trendlines & horizontal support n resistance.
Now If you see the chart , you can see trendline supporting upside movement , then we have Range Trendline & Horizontal Support ,
Near Range Trendline price is mostly overstretched and looking for minor pullback/retracement , knowing price range where there is high probability we can use Limit orders to scalp pips out of pair each time price reaches our Range trendline and till 4hr candle doesn't close above Trendline ,
Success rate of Trading with Range Trendline is high because it doesnot act as resistance but probable price zone where bullish/bearish pressure has reached its peak and need some cool down ,
Check our trade idea based on same principal in shorter time frame which worked out perfectly well and let us know what do you think.
For more info and knowledge about using trendlines.... we are here to help community trade better .. message us.
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