how to add trendlines to streetsmart edge

It’s recommended to place Stop Loss order under the previous low by a sufficient number of points so that it’s not triggered by a false breakout.Let's describe the logic behind placing Stop Loss orders using the example of the market situation shown in the picture above: Sell if the price has approached or touched the downtrend line.Buy if the price has approached or touched the uptrend line.Thus, the strategy of “Price bounce from TL' implies: By doing so, added to a potentially profitable trade, you'll also get the optimal reward risk ratio. This is explained by the fact that the asset price tends to continue the trend movement, while a reversal is less likely.īased on the logic above, it’s best to open a trade next time, when the price touches the trend line. You must have heard quite often the opinion that trading with the trend is the most successful. Rarely, trend lines are used as the price movement vector. Price bounce (reversal) from trend line.

Most techniques of trading with trend lines can be classified into two main groups: How to trade using the Trendlines Indicator? The dotted one is the suggested direction of the trend continuation, as well as the area of potential interactions between the price and trend line.Īs you can see from the picture above, the indicator perfectly identifies true and false breakouts. The solid line is the trend line that the indicator was able to determine. Thus, there can only be two lines on the chart at the same time:Īfter you install the indicator, you will see that trend lines consist of two kinds of lines: solid and dotted ones. Next, it checks the quality of the remaining ones and displays the two best trend lines on the graph. Then, using a few rough filters, it will exclude more than half of the lines found. Drawing Trend Lines TechniqueĪt first, the indicator tries to locate all possible trend lines on the chart. Besides, while watching the work of the indicator in progress, you’ll learn how to draw trend lines on your own.īelow you can find the techniques that will help you to learn how to analyze trend lines and use them in practice.įor experienced traders, the indicator will suggest trend line options and also save a lot of time while setting them. If you’re a novice trader, this indicator will help you understand what a trend line is.

The trend lines (TL) is a basic analysis tool, so it’s compatible with any indicator and trading system.

How to add trendlines to streetsmart edge