HOW TO TRADE WITH TREND LINE BREAKOUT
- Hello, all my subscribers. I believe that 100% traders know trend line. Many traders, investors usually trend line breakout as consideration within their trading system. However, are you sure that you have a good understanding of how to trade with trendline breakout? In this analysis, I just mention to downward trend line breakout, upward trend line breakout will be updated in the following analysis.
- General: After a strong reduction, the high probability that price will rebound, we call it as pull-back movement. Current time, traders will confuse between two options:
+ Option 1: Price will keep its previous trend line when pull-back complete.
+ Option 2: Price will make reversal movement, transfer to upward movement.
To make right option, we need to analyze structure of pull-back movement. Now, look at chart above:
- From 05 Dec 2022 to current time. BNB have two main movements:
+ AB: Strong reduction
+ BC: Pull-back
BC’s structure tell me it completed reversal movement because it meets two conditions of upward trendline:
1. Following top is higher than previous top (as chart show).
2. Following bottom is higher than previous bottom (as chart show).
Because of these reasons, I opened LONG position.
- Summary
1. DO NOT OPEN LONG IMMEDIATELY WHEN PRICE BREAK OUT DOWNWARD TREND LINE.
2.TAKE TIME FOR WAITING CONSIDERING, ANALYZING STRUCTURE OF PULL-BACK MOVEMENT
3. ONLY OPEN LONG WHEN PULL-BACK IS UPWARD TREND LINE.
- General: After a strong reduction, the high probability that price will rebound, we call it as pull-back movement. Current time, traders will confuse between two options:
+ Option 1: Price will keep its previous trend line when pull-back complete.
+ Option 2: Price will make reversal movement, transfer to upward movement.
To make right option, we need to analyze structure of pull-back movement. Now, look at chart above:
- From 05 Dec 2022 to current time. BNB have two main movements:
+ AB: Strong reduction
+ BC: Pull-back
BC’s structure tell me it completed reversal movement because it meets two conditions of upward trendline:
1. Following top is higher than previous top (as chart show).
2. Following bottom is higher than previous bottom (as chart show).
Because of these reasons, I opened LONG position.
- Summary
1. DO NOT OPEN LONG IMMEDIATELY WHEN PRICE BREAK OUT DOWNWARD TREND LINE.
2.TAKE TIME FOR WAITING CONSIDERING, ANALYZING STRUCTURE OF PULL-BACK MOVEMENT
3. ONLY OPEN LONG WHEN PULL-BACK IS UPWARD TREND LINE.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.