oussama94
05-28-2017, 01:25
Draw the lines through the edges of congested or ‘busy’ areas rather than the extreme
high or low points. If a trend line can be drawn using the body rather than the wick of
a candle, the body should be used. The extreme points are still important as highs
and lows, but are not that useful for trend lines.
The breaking of a well-established trend line may signal the trend is changing direction,
as it shows that the dominant trading crowds have lost their power. Note that a trend
line break is only valid if the candlestick closes on the other side of the line.
high or low points. If a trend line can be drawn using the body rather than the wick of
a candle, the body should be used. The extreme points are still important as highs
and lows, but are not that useful for trend lines.
The breaking of a well-established trend line may signal the trend is changing direction,
as it shows that the dominant trading crowds have lost their power. Note that a trend
line break is only valid if the candlestick closes on the other side of the line.