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Chapter 8, Part II. Trend Lines Page 3

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 15, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    ADVANCED TALKS ABOUT TREND LINES

    Pipruit: Thanks Commander, that’s very useful information, but I still find some confusing moments. First, take a look at the chart below – this is the same chart that you used for explanation of sideways trend lines:​

    [​IMG]

    I’ve found there additional trend lines, that stays with your sideways ones. Which trends are correct? If we use this long-term trend, then your sideways trend just a small noise in long-term move. From the other point of view, inside your sideways area I’ve found not flat trends as upward as downward. What trend should I use for trading?
    Commander in Pips: Son, you’re asking very important question. But first, let’s remember that we have to use at least two points to draw the trend line. These points should be either lows (for uptrend) or highs (for downtrend). Now let’s consider this long-long uptrend on your chart. As you can see, there are two points for building this line, and time difference between these points is huge – about 3 years. I tell you more – there are no points exist lower than these ones almost for 10 year period. Do you prefer to hold positions for years?

    Pipruit: Well, I don’t know, I do not trade yet. But I suspect that I would like to get profit quicker.​

    Commander in Pips: I understand. Now take a look at small red trend line. You can see that as to left as to the right from the tops, that are used for drawing this line, there are higher tops exist. So this line is not so long-term…

    Pipruit: Wait a minute, I see. It all depends on my trading time-frame. If I short term trader – I will use current short-term trades and will not deal with huge trend lines that are far above or below current market. Because when I close my position that is based on short-term trend line – it will happen well in advance of market reaching of this long-term trend line. In fact, this long-term trend line will not affect me anyway.​
     
    #1 Sive Morten, Dec 15, 2013
    Lasted edited by : Feb 12, 2016
    Hamza Samiullah and fran alvarez like this.
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