Topic The ABCs Of FX Trading
You have to see there is a trend, can be uptrend or downtrend, clearly 1k Daily Profits Review shows up on your chart. An uptrend is indicated by a series of higher high and higher low. A down trend is identified when price making a series of lower high and lower low. If price does not show those series then there is no trend or in other word it is non-trending market or sideways.
For example in an uptrend. After you can see price rises, then bounce back downwards and after that rises again; it is likely you really have an uptrend on your chart. After certain time, when you can see two significant lows, you can draw a line connecting those two lows. You can use ray feature for the line so that you still can have it in near future.
The trend line is valid as long as there is no significant or firm close below that uptrend line. As long as price trades above the line then buyers still dominates the market.
Do not worry if you find yourself making mistakes when you try to draw trend line. Even though it can be dangerous for your trend trading, after certain time you are going to able to draw trend line correctly. I did some mistakes too and I learn a hard way until I can easily construct correct trend line on my chart resulting in better trend trading. If you are still not sure but you are in a hurry to perform trend trading, you can skip using trend line for your real trading. Using Moving Average can be an alternative for the time being.