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direction of the market is to use trend line. Basically, trend line shows the
direction of the market by connecting two points of previous reaction high or
connecting two points of previous reaction low. Trend lines are drawn on a chart
to determine directions. Once the direction is drawn the trend can be determine.
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drawn on a monthly, weekly, daily, day chart or tick chart. Trend line will help
trader know when to enter the market or when to exit the market. There are many
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connected with two previous reaction low, it has established a channel. The
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short he would buy at the top of the trend line. This is also known as support
and resistance trading. Traders believe that trend line give the market some
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happens when the trend line break and the trend can no longer continue.
Trading a trend line break can give trader the signal of a trend reversal.
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In technical analysis trading, traders expect that a trend line will
continue. Sometimes the continuation can last for a few hours in an intraday
chart or months on a daily chart. Trend line is one of the price actions that is
widely followed by the general population of traders. Trading trend line gives
traders a useful insight and expectation of price action. Price action should be
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