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Chapter 8, Part II. Trend Lines Page 6

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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    Commander in Pips: The last thing for today. Application of the rule – “The opposite reaction is equal to initial reaction”. what does it mean in a way of trend lines?

    As you can see from many charts, a market very often accelerates faster than the trend line, but then returns to it. The rule is – the distance it deviates from the trend line is the same amount it will move in the opposite direction if there is breakout. Look at the next picture:

    [​IMG]

    And here is another example:

    [​IMG]


    Pipruit: Cool! That is really important. I definitely should remember that…​




    P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page and Sive should answer soon.


    Note: FPA ranks are earned in the battles against scam, not in the classroom.
     
    Hamza Samiullah and fran alvarez like this.
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