Wednesday, September 9, 2009

How Plot Trend Lines?

How to draw trend lines for trading? Kita draw TL untuk lihat price reaction atau confluence. Draw Trend Line and keep dalam chart and see price action; bukannya ad hoc analysis.

The best way untuk drawn TL on line chart, so connected 1st swing lows close to next swing lows close which are important swing lows for up trend. 

There are so many things you can do with TLs providing you know what to do with the information they give you.

Connecting the close of major swing lows and the close of major swing highs and projecting them forward reveals further S&R especially when they are in confluence with horizontal S&R or fibs - when this happens it is very powerful.

Caution: Don't put too many TLs on your charts as 1) you will not see the overall picture clearly and 2) our brain/subconscious sees them as boundaries and subconsciously "limits" our thinking/analysis to the restrictions imposed by those TLs.

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