Please forward this error screen to web108. Trend lines double tops forex candlesticks analysis simple to use and easy understand. Whether you’re a beginner or a professional trader — you’ll always draw a couple of lines on your chart.
Today we’ll learn how to do it. Can you see possible trend lines already? Any trend line should connect at least 2 tops or 2 bottoms. 2 candle on each side of it which prices that don’t exceed the lowest point.
Resistance levels, and therefore should be used for drawing trend lines when necessary. If you need help with finding tops and bottoms, use Fractals indicator, which will find every single top and bottom for you. Avoid drawing too steep trend lines as they will rarely be of any use. In addition, if such trend line is crossing any of the price bars, it’s a wrong trend line to draw. The more tops and bottoms are connected — the stronger the trend line becomes.
Some traders won’t recognize a trend line as valid until there has been at least 3 points connected. When the market starts to accelerate, the angle of a trend will increase. Any trend line sooner or later will be broken. We know that when support level is broken it automatically transforms into resistance level.
Same rule applies to trend lines. When a trend line is broken, it should stay on the chart for some time, as we’ll be expecting a retest of the line in the nearest future: this retest of a broken trend line is an excellent opportunity for opening a new trade. You won’t always see such ideal retests of a broken trend line, sometimes there will be a shorter pullback to the broken line without reaching it. Nevertheless, this is a common pattern every trader should be able to recognize. They don’t necessarily have to have an angle.