| Trend Lines are the most powerful technical | | | | If the line is too steep do not trade it - it is |
| analysis tools. They allow you to gauge the trends | | | | probably not a strong line and will break easily. |
| direction, identify potential reversal levels and | | | | Avoid lines that are too steep and trade only the |
| enter trades with low risk and high reward. In this | | | | ones with reasonable but average slope - to |
| article, you will learn how to improve your trend | | | | increase your profitability. |
| line trading with 3 power tips. | | | | Tip #3: Demand Strong Bounces |
| Tip #1: Trade only Trade Lines with 2 Peaks | | | | Demand that each bounce on the trend line |
| Demand that each line you trade will be tested at | | | | results in a strong reversal to the opposite |
| least twice before basing any trades on it. This | | | | direciton. If price touches a trend line and retraces |
| ensures that the line is indeed strong and able to | | | | slowly - it is a sign that the trend line is weak and |
| generate profitable trading signals. If you trade | | | | prone to break. Demand that the lines you trade |
| when price bounces on the trend line, it is okay to | | | | are psychologically strong so when price reaches |
| enter on the third bounce, after two tests of the | | | | them the trade will be strong and fast. Do not |
| trend line. As a rule of thumb, avoid technical | | | | waste your time on trend lines that are of zero |
| levels that have not been tested at least twice. | | | | importance and effect. |
| While it may be profitable to trade levels that | | | | These tips will help you to identify trend lines and |
| were tested only once, it takes a lot of | | | | more importantly - help you decide which are |
| experience to properly identify and know which to | | | | worth trading and which are weak, and should be |
| trade and which to ignore. | | | | ignored. The most important decision in trading is |
| Tip #2: Don't Trade Trend Lines which are Too | | | | not what to trade, but what not to trade. |
| Steep | | | | |