This is a guide for the workshop,
"HOW TO SOLVE THE BIGGEST PROBLEM WITH TREND LINES".
Workshop OUTLINE:
Basic Overview of Trend Lines
- Standard Horizontal Support & Resistance
- Standard Diagonal Trend Line
- Channels, Triangles, Flags
'Secrets' most traders don't know
- Trend Lines are Relative to the chart you are looking at.
- How to Tell When a Trend Line will get Weaker ( The 'Debunk')
- The 'Triple T' Strategy (Multiple Time Frame Analysis
Inverted Trend Lines
- Standard Inverted Trend Line
- One Two Punch!
Workshop Guide:
Basic Overview of Trend Lines
✅ Pay Attention ✅
A trend line is a line drawn atop highs or under lows. This shows the overall direction of price. Trend lines are a visual representation of support and resistance. You can use it on any time frame. The purpose of a trend line is to see the 'Line of a Trend'
Standard Horizontal Support & Resistance
Horizontal Support & Resistance requires only 1 point of reference.
Standard Diagonal Trend Line
Diagonal Support & Resistance requires 2 or more points of reference.
NOTE: Buying or Selling on the 3rd touch of a 'well spaced' trend line is a good idea.
Standard Trend Line Break
- Price breaks through a trend line.
- On most occasions, price falls back to the trend line before continuing in the direction of the broken trend line.
Channels, Triangles, Flags
Channel
Triangle
Trend Lines are magical. Look what happens when i simply extnd this triangle into the future to form an X. Price touches the NEW trend lines almost to the pip!
Flag
'Secrets' most traders don't know
Trend Lines are Relative to the chart you are looking at.
Always look at a daily chart to find the direction of the overall trend. Never ever base a trend on a 5 minute chart.
Here is a daily chart of EURUSD
We can see that the uptrend is a bit wobbly. Ask yourself:
Where would be a good buying area? (since it is still in an uptrend)
Below, you can see an HOURLY chart of the EURUSD
Price broke down below an hourly trend line so I will want to stay out or put my stop really close under the nearest low. Even though I don't want to trade here (YET), knew by looking at a higher time frame chart that price was in an uptrend. Trend Lines can help confirm bad trades before we risk any money.
How to Tell When a Trend Line will get Weaker ( The 'Debunk')
Trend Lines do not get stronger the more times they are touched. They get weaker!
The 'Triple T' Strategy (Multiple Time Frame Analysis
This strategy simply involves getting 3 charts to 'ADD UP' before placing a trade. For instance, if you are going to place a buy order, make sure the daily, hourly, and 5 minute charts are all pointing to buy opportunities. Don't just look at one chart.
Cantor Exchange Strategy Perfect for Binary or Digital Options!
One thing that Inverted Trend Lines can be used for is placing a binary option that ends at the end of the bar that touches the inverted trend line on the 3rd touch.
Inverted Trend Lines
Standard Inverted Trend Line
One Two Punch!
This 'Follow ALong' Guide will help you stay on target during the workshop.
See you then!
